Bitcoin is the most important cryptocurrency in the world, with the highest market capitalization level and the ability to influence the entire digital token trading ecosystem with its fluctuations. In spite of the strong performance exhibited at the beginning of the year, the second and third quarters of 2024 brought diminished price action, and while BTC itself was resilient enough to hold on to some of its gains. It still plummeted below $60K as of August 8th. Those who are looking to purchase coins during this time have started looking into how to buy Bitcoin with credit card. Since the consensus is that you should acquire new tokens when values are low and then sell when they are high to make your transactions more profitable.
Since the market remains uncertain at the moment, it is vital for investors to have comprehensive strategies and avoid making random, emotional choices when trading.
Whale transactions
The crypto dip has ushered in a time for whale transactions, the most intensive of its time in the last four months. Some analysts believe that these transactions could further contribute to the prices stagnating at a lower level, too. The highest concentration of whale movements was recorded between August 5th and 6th, as wallets started accumulating on the price dip. Data shows that there were approximately 28,319 transactions with more than $100,000, as well as 5,738 transactions worth more than $1 million.
On August 5th, Bitcoin shed nearly 20% of its value, momentarily going below $50,000. It has since recovered, but this was nonetheless an essential market movement in an environment that had been performing reasonably well for several months, albeit at a diminished pace compared to what investors were expecting. On August 7th, the latest metrics showed that whales had amassed roughly $23 billion worth of cash in the span of around thirty days, as activity reached its peak when the market crashed. Analysts see this as a very clear accumulation phase, as more than 400,000 coins moved to permanent holder addresses since the beginning of July.
The whales who had been holding on to their coins for more than three years sold their assets to newer whales during the span of three months, between March and June. As a result, there is no significant selling pressure from the older whales at the moment. Even before the big slump, reports indicated that whales had already started moving BTC coins off exchanges at a higher rate than during the last nine years. Those who own at least 1,000 BTC made the most transactions since 2015.
$89K
As of November 12th, Bitcoin’s price was at a record $89,623, a level the coin has never achieved before. The market is displaying incredibly strong performance at the moment, but investors are aware of the fact that they are in uncharted waters and need to pay attention to the future shifts and changes in order to ensure that their portfolios remain safe and profitable. An ever-growing number of investors believes that BTC could enter a six-figure area for the first time in its history before the end of 2024. This indicates that the market is incredibly bullish right now, as this shift was only expected to take place in 2025, following more consolidation.
The results of the US presidential elections incentivized many who were still on the fence about the way they should proceed when it comes to Bitcoin, as the expectations are that the regulatory landscape will be better for traders and that the markets will be easier to deal with. The fact that Bitcoin succeeded in reaching such an elevated level in such a short timeframe, a level that far exceeds its all-time high of March, has been eagerly welcomed by the trading community, but most are convinced that this is only a pit stop on the way to further growth. This means that volatility levels will continue to remain steep, and that future upswing trends will be equally noteworthy. Any possible corrections that will occur during this time will likely be just as intense.
Apart from the elections, investor sentiment has also been incredibly strong. The call options have been pricier than the put options, showing that a strong bullish bias remains set in place. On November 11th, Bitcoin surpassed $1.6 trillion in market capitalization, a new record for digital gold.
Fiscal reserves
The United States is not the only place where macroeconomics and standard financial institutions have an impact on the cryptocurrency environment. The Hong Kong Legislative Council has recently announced its plans to collaborate with shareholders in order to determine the feasibility and potential advantages of adding BTC to the region’s financial reserves. The growing global recognition for digital assets has been fundamental in this sense, as the trust investors worldwide put in the asset has not gone unnoticed by authorities.
It is true that both blockchain solutions and Web3 technologies have been gaining traction among members of the general public. Bitcoin is decentralized and has a limited supply, making it unique among digital assets, as its scarcity makes it more valuable. Since digital holdings are entering the mainstream, it only makes sense that there should be a conversation about whether they should be integrated into financial systems that have been around for far longer. However, the process is still only in its incipient stages.
The proposal will have to go through a process of rigorous and meticulous research before receiving official approval. Determining whether Bitcoin is compliant with official regulations will be one of the most important aspects, if the cumbersome processes taking place in other countries are anything to go by. Nonetheless, it is an essential thing to ensure the secure and strategic integration of BTC in the fiscal reserves of Hong Kong.
Bitcoin is much stronger and more resilient than it used to be, but that doesn’t mean that the corrections no longer affect it and its trading community. If you’re an investor, remember that it is more important than ever to have a strong strategy that can take your portfolio further and allow you to maintain a steady rate of earnings.
For more articles, visit OD Blog.
