Bitcoin rallies amid strong accumulation by whole coiners
Bitcoin prices have surged in recent weeks, reclaiming support above $26,000 due to increased accumulation as well as a rebound in the futures market.
Data from Glassnode show that the number of Bitcoin addresses holding at least 1 BTC has reached an all-time high of 1.09 million. This trend suggests that investors see Bitcoin as a long-term store of value, hedging against inflation and economic uncertainty.
The recent rally in Bitcoin prices is also encouraged by a rebound in the futures market. September Bitcoin futures prices have climbed steadily, providing a positive signal for the overall market sentiment. Technical analysts believe that the bulls will have to continue pushing higher to confirm that a market bottom is in place.
#BTC is going to see-saw around ~$26k until the Weekly Close
Most important will be how $BTC Weekly Closes relative to $26k#Crypto #Bitcoin https://t.co/nX7mQ1Nb38 pic.twitter.com/JNdPfbrjCD
— Rekt Capital (@rektcapital) September 8, 2023
The broader macroeconomic environment and regulatory landscape are also playing a role in shaping Bitcoin’s price trajectory. On the one hand, rising interest rates and inflation concerns could weigh on risk assets, including Bitcoin. However, persistent inflation could further bolster the cryptocurrency’s appeal as an inflation hedge.
The recent activation of the Taproot upgrade on the Bitcoin network has also contributed to the positive sentiment. Taproot is a significant technical upgrade that improves Bitcoin’s privacy, scalability, and innovative contract capabilities. This upgrade is expected to make Bitcoin more attractive for individuals and businesses.
The #Bitcoin price took out all the lows & bounces back in the range
Is the bottom in? What are the metrics to watch? It's a strong sign that we're bouncing back up above $26,000 since the correction today.
Just on the moment that Franklin files for a Spot ETF.
Coincidence???… pic.twitter.com/nLNIBhNubp
— Micha?l van de Poppe (@CryptoMichNL) September 12, 2023
Potential upcoming selloff
Bitcoin’s exchange balances have been growing since the end of August, indicating that more traders are moving their funds. This could be a sign that traders are expecting setbacks in the market and are preparing to sell their Bitcoin.
The next Federal Reserve announcement on rates is only several days away, and there are concerns that this could trigger another Bitcoin selloff. However, if that were to happen, it would likely be followed by heavy accumulation as traders take advantage of the extended discount.
There is a chance that Bitcoin could lose its current support in case of a major selloff. However, the potential downside could also be limited, as its price action in August could have priced in the potential impact of interest rate hikes. There is also still significant interest in Bitcoin over other digital currencies. The global capitalization for cryptocurrency is currently over $1 trillion, with Bitcoin dominating by around $512 billion or 48.57 percent of the market.
?? #Bitcoin $BTC Number of Addresses Holding 1+ Coins just reached an ATH of 1,019,765
Previous ATH of 1,019,706 was observed on 08 September 2023
View metric:https://t.co/s7tx1xxyz3 pic.twitter.com/csvY8P9fNw
— glassnode alerts (@glassnodealerts) September 9, 2023
Ethereum and altcoin updates
In contrast to Bitcoin, other cryptocurrency prices have been tumbling recently as investors have sold off riskier assets amid concerns about rising inflation and interest rates. The price of Ethereum (ETH) fell below $1,600 as investors sold off riskier assets amid fears of rising inflation and interest rates.
The sell-off in ETH was part of a broader selloff in cryptocurrencies. Solana’s (SOL) price dropped 20 percent after reports of FTX halting withdrawals. The information came amid concerns about the solvency of Three Arrows Capital, a significant cryptocurrency hedge fund heavily invested in SOL.
?? #Bitcoin $BTC Hash Rate just reached a 1-month low of 60,787,530,201,427,197,952
Previous 1-month low of 68,249,438,982,076,702,720 was observed on 17 August 2023
View metric:https://t.co/idoCHWnGEn pic.twitter.com/iNWETBPADJ
— glassnode alerts (@glassnodealerts) September 9, 2023
Cardano (ADA) price falls below 50 cents as investors dump altcoins amid concerns about the broader cryptocurrency market. The price of XRP also fell below 30 cents as the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) drags on.
The price of Dogecoin (DOGE) fell below 6 cents as meme coins lost popularity. The sell-off in DOGE was part of a broader selloff in meme coins, with Shiba Inu (SHIB) also falling sharply. Other meme coins, such as Floki Inu and Baby Doge Coin, also saw significant declines.
