Popular onchain data analytical platform CryptoQuant spotlighted the Bitcoin (BTC) price trend amid accumulation from whale wallet addresses.
These accumulations come amid high volatility in the Bitcoin market, leading to dwindling prices for the leading coin.
With the recent whale interaction, investors speculate on an imminent Bitcoin price rebound.
The OTC Bitcoin Whales Insight from CryptoQuant
In an X post, CryptoQuant posted a chart showing 30,000 BTC inflows into whale addresses.
CryptoQuant views this BTC accumulation as a typical signal of over-the-counter (OTC) buying.
This means the whales currently accumulating BTC are likely buying from OTC vendors.
Typically, institutional investors prefer to purchase Bitcoin through OTC trading rather than from exchanges.
This is because they determine prices and move large volumes as required.
Bitcoin whales continue to buy more BTC amid the ongoing price decline as retail investors are forced to liquidate their positions.
This could have implications for market liquidity and future price movements. The rise in OTC trades also coincides with a positive Coinbase Premium Index, showing no signs of selling pressure.
This index measures the percentage difference between the price of Bitcoin on Coinbase compared to other exchanges in the US.
A positive index value indicates that Bitcoin is trading at a higher price on Coinbase than on other exchanges.
It also suggests increased buying interest from U.S. investors, particularly institutions.
According to experts’ research, large investors participate in position accumulation during small trader withdrawals, indicating that market prices may change soon.
Bitcoin Price Consolidation, Volatility and Projects
On Tuesday, the price of Bitcoin recovered to $100,000 after briefly dropping to $92,000, indicating a robust rebound amid market uncertainty.
However, the price quickly plummeted and is currently consolidating at $97,000.
As of this writing, BTC price was trading at $97,524, down 1.69% in the last 24 hours.
The 24-hour trading volume decreased by 18.35% to $58.85 billion, indicating reduced investor activity.
Meanwhile, the spot Bitcoin ETFs collectively pulled in $341 million on February 4.
BlackRock’s iShares Bitcoin Trust (IBIT) dominated with $249 million. This surge follows a previous day’s net outflow of $235 million on February 3, snapping a four-day inflow streak.
Several market players have forecasted an optimistic Bitcoin price outlook amid the latest market dynamics.
British multinational bank Standard Chartered predicted Bitcoin’s price could hit $500,000 in the long term.
The bank emphasized that it would take Bitcoin roughly three years to achieve this milestone.
Surviving the Market Uncertainty, the Ki Young Ju Advice
Amid the ongoing market uncertainty, CryptoQuant founder and CEO Ki Young Ju advised crypto investors on their investment strategy.
Specifically, the CEO advised crypto investors against focusing on short-term gains. He thinks this strategy implies accepting the risk of long-term loss for short-term gains.
Young Ju emphasized that most people want short-term profits, even if the anticipated long-term losses outweigh the present benefits.
He likened their approach to margin futures trading, where the risk of losing everything is ever-present.
Young Ju pointed out that their success is fleeting even when they succeed.
However, he said those who follow this path tend to succeed gradually, leveling up over time due to their patience and tenacity. Young Ju concluded,
“By realizing short-term losses in advance, they reduce the risk of catastrophic losses in the future. It’s painful, but the success lasts.”
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