BTC Price Pushes Above $27,000 As Bitcoin Whales Join the Rally
After starting the week on a positive note, Bitcoin continued its impressive surge Thursday, breaking and trading above the $27,000 mark.
Notably, this surge comes following the Federal Reserve interest rate decision scheduled during the FOMC meeting on Wednesday, September 20. The outcome of this decision carried substantial implications for Bitcoin’s price, given the enduring influence of macroeconomic factors throughout 2023.
Market expectations leaned heavily towards the status quo, with a 99% probability of no interest rate hike and a mere 1% possibility of a hike to 5.5% to 5.75%, as per CME’s Fed Watch Tool. Maintaining existing interest rates could fortify Bitcoin’s recovery, while an interest rate hike would amplify selling pressure, potentially negatively impacting the broader crypto market.
Meanwhile, following the FOMC meeting, analysts have delved into the factors behind Bitcoin’s recent surge. Gustavo Faria, a crypto analytics platform Cryptoquant analyst, highlighted a notable trend on Tuesday. In a detailed post, he noted that most Bitcoin purchases during this uptrend have been orchestrated by addresses holding 1,000 to 10,000 BTC, accounting for a substantial 66% of the trading volume.
“The rise in the Coinbase Premium Index confirms this setup, signalling whale accumulation. Unlike other uptrends driven by the derivatives market that we’ve seen in recent weeks, this one seems to have more solid support in the spot market, creating a more optimistic structure,” wrote Faria.
Faria also shed light on the expansion of approximately 1 billion in Open Interest (OI) within derivatives markets. This expansion signals a surge in open positions, with positive funding rates for perpetual contracts. These observations collectively underscore a prevailing sentiment of optimism among traders, particularly those favouring long positions.
Faria’s observations come even as crypto analytics firm Santiment suggested that whales have been “sitting on the sidelines” in the past few months as they bid their time. Historically, such limited activity among Bitcoin addresses held by whales indicates cautious optimism among these influential players and often precedes bullish moves.
Additionally, data from Glassnode reveals that nearly 80% of all Bitcoin has remained static for the past six months. With approximately 19.5 million BTC already in circulation and just 1.5 million left to be mined, this data has generated significant bullish sentiment within the crypto community.
That said, Bitcoin’s recent surge beyond $27,000 has reignited excitement within the cryptocurrency community, with increasing investors projecting higher prices.
At the time of writing, BTC was trading at $27,093, marking a 3.55% increase over the past 24 hours, as per data from CoinMarketCap. Moreover, the cryptocurrency’s trading volume surged by over 16% during the same period, reaching $14.03 billion, reflecting renewed optimism among investors.
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