Despite a temporary pause in Bitcoin’s recent rally, big players, known as “whales,” have capitalized on the market dip, accumulating 71,000 BTC within just one week. This strategic move comes as the crypto market faces heightened volatility, leading to more than $900 million in liquidations on futures trades, affecting both bullish and bearish bets.
Massive Liquidations Amid Market Correction
Data from Coinglass shows that around 262,620 traders were caught in liquidations, with the total losses amounting to $968.18 million. The market saw a pullback after an initial surge, where Bitcoin hit a high of $89,623 before retreating to $85,300 on Tuesday. This fluctuation comes shortly after the U.S. election, which had previously driven Bitcoin to new highs.
Strong Bullish Sentiment Remains
Despite the recent decline, optimism remains high among investors who expect Bitcoin to break through the $90,000 mark. The excitement surrounding Donald Trump’s election victory and his promises of a friendlier regulatory environment for cryptocurrencies has fueled expectations of continued growth.
Long-Term Bitcoin Holders Unmoved by Price Swings
Interestingly, long-term Bitcoin holders are showing no interest in selling their assets below the $100,000 threshold. Matt Hougan, Bitwise’s Chief Investment Officer, noted that short sellers are now hesitant to bet against the cryptocurrency’s upward momentum, while seasoned holders remain firm in their positions.
“Short sellers don’t want to stand in the way of Bitcoin’s rally, and long-term investors are unwilling to sell at anything below $100,000,” Hougan emphasized in a recent post on X (formerly Twitter).
Surge in Bitcoin ETFs and Institutional Interest
The anticipation of Bitcoin reaching $100,000 has driven institutional investors to increase their holdings in Bitcoin Exchange-Traded Funds (ETFs). Investment firms, like Bernstein, are advising clients to consider adding Bitcoin to their portfolios, given its potential for significant gains.
Mixed Reactions in Altcoin Markets
While Bitcoin maintains a commanding 60% share of the crypto market, other digital assets are showing mixed responses. Ethereum, which surged by 33% over the past week, saw a slight 3% dip. Similarly, the meme coin Shiba Inu pulled back by 4% after a substantial 57% increase.
The broader cryptocurrency market remains strong, with its total valuation now exceeding $3 trillion, a significant rise from $1.17 trillion at the start of the year. Market analysts are optimistic that a Republican-led administration could drive the total crypto market cap to $10 trillion by 2026.
What’s Next for Bitcoin?
Though a slight correction is underway, experts see this as a healthy pullback that could set the stage for another rally. With solid support levels in the $86,500 – $84,000 range, many predict Bitcoin will soon break past the $90,000 barrier.
As of now, Bitcoin’s market value has surged past $1.6 trillion, surpassing the valuation of silver and rapidly catching up with tech giants like Tesla and Meta.
