Bitcoin and Ethereum Show Accumulation Post-Crash, But Fed Rate Hike Looms
Bitcoin and Ethereum Show Accumulation Post-Crash, But Fed Rate Hike Looms
Recent analyses reveal significant on-chain shifts for major cryptocurrencies. Bitcoin miners have pivoted to net accumulation following a price dip below $60,000, indicating a potential market bottom. Similarly, Ethereum whales are actively buying the dip, leading to a sharp decrease in ETH exchange reserves and some Wrapped Bitcoin (WBTC) accumulation, suggesting reduced selling pressure. However, macro-economic factors present a potential headwind, with rising odds of a Federal Reserve rate hike casting a shadow over the market, particularly for Bitcoin.
Bitcoin (BTC) price rebounded about 1.6% over 24 hours to near $63,100. After six weeks of selling, Bitcoin miners have flipped to net accumulation just as price carved a cycle low, an on-chain shift that echoes the last major turn.
Large Ethereum (ETH) holders bought heavily after the latest crash, with one early investor rebuying more ETH and Wrapped Bitcoin (WBTC) than they sold earlier. Exchange reserves also fell sharply, a sign that holders moved coins away from trading platforms, indicating whale accumulation near $1,600.
Despite these positive on-chain signals, macro concerns persist. America's newest Federal Reserve Chair, Kevin Warsh, is associated with tighter inflation discipline, and Fed Rate Hike Odds have just hit 68%, raising questions about its potential negative impact on Bitcoin's market performance.