{"id":531152,"date":"2023-05-11T09:00:55","date_gmt":"2023-05-11T09:00:55","guid":{"rendered":"https:\/\/wncen.com\/?p=531152"},"modified":"2024-06-11T14:36:18","modified_gmt":"2024-06-11T14:36:18","slug":"whales-keep-buying-bitcoin-what-they-might-know","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/whales-keep-buying-bitcoin-what-they-might-know\/","title":{"rendered":"Whales Keep Buying Bitcoin, What They Might Know That You Don’t"},"content":{"rendered":"

The Bitcoin price took a major hit yesterday despite a positive surprise<\/a> in the US Consumer Price Index (CPI), following a rumor that the US government sold 9,800 BTC related to Silk Road. Since then, the market has struggled to recover from the shock.<\/p>\n

However, one group of investors is showing no fear: whales. The big investors with a lot of money are considered one of the most reliable indicators of when is a good time to buy Bitcoin.\u00a0On-Chain analyst Axel Adler stated, “BTC Accumulation and Distribution – no changes. Large players continue to buy BTC from smaller players.”<\/p>\n

The chart below shows that investors with more than 5,000 BTC have been buying large amounts (alongside smaller investors <10 BTC) over the last 30 and 90 days, while all other cohorts have been shedding BTC.<\/p>\n

\"Bitcoin
Bitcoin accumulation and distribution by cohorts | Source: Twitter @AxelAdlerJr<\/a><\/figcaption><\/figure>\n

What Do Bitcoin Whales Know?<\/h2>\n

Of course, it can only be speculated what the Bitcoin whales know that others do not. But the fact is that Bitcoin saw an upward trend yesterday after the CPI release, until the fake news (manipulation?) about the US government selling Bitcoin broke.<\/p>\n

But, yesterday’s CPI print could have significantly more implications than are apparent at first glance. For some time now, the market has been betting on an early pivot by the U.S. central bank (Fed). The market is currently betting on three interest rate cuts by the end of the year (3x 25 bps to 4.25-4.50%).<\/p>\n

Related Reading: Bitcoin Price Blasts Above $28,000 Following 4.9% April CPI Report<\/a><\/div>\n

While the U.S. banking crisis reinforces this bet, whales may have been calling the Fed’s bluff for some time. As NewsBTC editorial director and technical analyst Tony Spilotro recently pointed out via Twitter, the Fed (and the masses) are relying on lagging indicators.<\/p>\n

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Remember: CPI is a lagging indicator. The stock market is a leading indicator.<\/p>\n

— Tony "The Bull" Severino, CMT (@tonythebullBTC) May 10, 2023<\/a><\/p><\/blockquote>\n