BTC whales continue to ‘hodl’ despite low volatility
A Bitfinex Alpha report reveals a steady accumulation of bitcoin by long-term investors, reflecting a strong demand while creating a complex market environment. Peter Schiff’s recent criticism and BTC price analysis adds to the ongoing speculation.
Bitcoin hodlers hold strong
Bitfinex Alpha’s latest report sheds light on the ongoing accumulation of bitcoin by long-term investors, indicating strong demand. The report examines the state of bitcoin volatility, investor accumulation, and the potential implications for the market.
The researchers have highlighted that long-term bitcoin investors (hodlers) are still accumulating the flagship cryptocurrency at a rate of approximately 42,200 BTC per month,
They also say the accumulation trend has been on for over two years, with data suggesting the possibility of another six to 12 months of accumulation in view.
The report hints that a potential increase in volatility may be on the horizon due to next year’s bitcoin halving event and the recent news surrounding the ETF application by BlackRock.
The two-month realized volatility stands at around 2%. This indicates a relatively low recording compared to the 2021 bull market and the volatility experienced during the COVID-19 pandemic crash. Implied volatility (IV) has also remained low, reflecting market expectations of continued low volatility.
Implied volatility simply refers to the market’s forecast or prediction of a probable change in the price of an asset.
According to the analysts, BlackRock’s positive ETF news and the impending halving event have caused a slight rise in implied volatility.
The recent jump in daily IV above 50% on June 21 signifies the market’s anticipation of increased price movement. Thin trading books and low liquidity further contribute to potential volatility, as witnessed in recent events on Binance.US, where a liquidity crisis led to a brief price spike to $138,000.
Schiff’s criticism and BTC price analysis
With his comments, Peter Schiff, a die-hard bitcoin critic and gold advocate, recently stirred controversy within the crypto community. While whale continue to accumulate BTC, Schiff maintains his skepticism and suggests that the current crypto rally will soon come to an end.
The bitcoin price is currently hovering around $30,767.02, representing a 1.27% increase in the last 24 hours and a 14.45% increase in the weekly timeframe, according to CoinGecko.
With the current positive price change, the Relative Strength Index (RSI) value of 70.5 on the weekly timeframe signals that the market is currently overbought.
Significant price swings within a narrow range have characterized the market.
The recent increase in value beyond the $30,000 level has generated some optimism among bitcoin investors. If bitcoin experiences price rejection, a drop to $28,000 or below could be possible.
On the other hand, clearing the $30,000 region and advancing higher could trigger a stronger bullish momentum for the orange coin.
As the market moves forward, the upcoming bitcoin halving event, scheduled in approximately 300 days, introduces an interesting dynamic. Historically, halving events have been associated with increased market activity and price movements. It remains to be seen whether next year’s halving will trigger another all-time high in the price of BTC.
