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Cryptocurrency News Articles
Bitcoin (BTC) Price Action Cools as Whale Sell-Offs and Token Unlocks Offset 'Bullish Flows' From Institutions
Oct 04, 2024 at 09:29 pm
The Bitcoin price has faced significant corrections since March, driven primarily by large-scale sell-offs from whales and massive token unlocks flooding the
The Bitcoin price has faced significant corrections since March, driven primarily by large-scale sell-offs from whales and massive token unlocks flooding the total market supply of altcoins.
However, according to a recent report from 10x Research, these factors have offset “bullish flows” from stablecoins, spot Bitcoin ( BTC ) exchange-traded funds (ETFs) and “a rise in futures leverage.” The report states:
“Despite the narrative of institutional inflows driving the 2023 crypto bull market, our analysis suggests that retail participation was the primary driver of the uptrend.”
Markus Thielen, founder of 10x Research, explained to Cointelegraph what he believes could have the biggest impact on BTC in the next six to 12 months:
“The biggest factor that will determine the Bitcoin price in the next 6-12 months is the activity of whales. If whales continue to sell their BTC holdings at a high rate, it will put downward pressure on the price. However, if whales begin to accumulate BTC again, it could drive the price significantly higher.”
Thielen’s statement aligns with the 10x Research report, which highlights the strong correlation between whale activity and Bitcoin price movements throughout 2024. Notably, the report identifies two distinct periods of whale activity that influenced the market.
“We’ve observed two distinct phases of whale activity throughout 2024. In the first half, whales drove the market lower, while in the second half, their activity shifted and contributed to the H2 rally.”
The report adds that as Bitcoin approached the 2024 peak, whale activity suggested their intent to sell their holdings at a large scale. This observation is based on the analysis of whale inflows and outflows from major cryptocurrency exchanges.
“As we approached the February/March 2024 bull market peak, we’ve observed significant inflows from Whales (holders with over 1,000 BTC) into exchanges, signaling their intent to sell.”
According to the report, the activity of these “whales” indicated that they were “cashing out,” which contributed to Bitcoin’s inability to gain further upward momentum and begin 2024.
Relative Strength Index (RSI) is a technical analysis indicator that measures the magnitude of recent price changes to evaluate whether an asset is overbought or oversold. It typically ranges from 0 to 100, with 50 considered neutral. An RSI above 70 generally indicates overbought conditions, while an RSI below 30 suggests an asset may be oversold.
A golden cross occurs when the 50-day moving average (MA) crosses above the 200-day MA on a price chart, typically indicating a bullish trend. Conversely, a death cross is formed when the 50-day MA crosses below the 200-day MA, often signaling a bearish trend.
Exchange-traded funds (ETFs) are a type of financial instrument that tracks the performance of an underlying asset, such as a stock index or commodity. They offer investors a way to gain exposure to the performance of an asset without directly purchasing it. In the context of cryptocurrencies, ETFs can provide a convenient and regulated method for investors to participate in the digital asset market.
Tap-to-earn games have gained popularity in the blockchain gaming space, typically offering simple and accessible gameplay mechanics. These games often reward players with virtual assets or tokens for performing simple in-game actions, such as tapping the screen or completing mini-games. Tap-to-earn games have attracted a large player base, especially in東南亞, and some even integrate elements of decentralized finance (DeFi) or non-fungible tokens (NFTs).
Despite the massive growth in blockchain games, some critics argue that the heavy focus on financial incentives and earning virtual assets may limit the creativity and sustainability of these games. They contend that blockchain games could benefit from a broader exploration of genres, deeper storytelling and engaging gameplay experiences beyond the primary goal of earning tokens.
Bums is a tap-to-earn game available on Telegram that has quickly gained popularity, amassing millions of players in a short amount of time. The game features a unique and humorous premise, where players扮演無家可歸者, attempting to navigate the streets and earn virtual money. Players can then use their earnings to purchase items, upgrade their character and progress through the game world.
According to the 10x Research report, the last batch of major token unlocks occurred in November, and the next batch is expected to be significantly smaller. This observation suggests that the selling pressure from token unlocks will likely decrease in the coming months.
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- The Bitcoin Situation May Improve in 6 to 12 Months
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- The price of Bitcoin has gone through some notable corrections since March. This has been influenced by a combination of significant sell-offs by whales and a massive token unlock that has increased the total supply of altcoins in the market.