Bitcoin Whales Accumulate $5.4B in July, Hitting Decade-High Levels

 **Bitcoin Whales Accumulate $5.4B in July, Hitting Decade-High Levels**

*Harvey Hunter*  

*Last updated: August 1, 2024 at 08:14 EDT | 2 min read*

In July, Bitcoin whales significantly ramped up their holdings, acquiring $5.4 billion worth of BTC, the highest level of accumulation seen in a decade. This surge in investment occurred amidst notable price volatility, as large Bitcoin holders capitalized on market dips.

According to data from IntoTheBlock and TradingView, addresses that each control at least 0.1% of Bitcoin’s total supply amassed over 84,000 BTC last month, totaling approximately $5.385 billion. This represents the most substantial accumulation since October 2014, when Bitcoin hit an 11-month low.

The substantial buying was influenced by a price drop below $55,000 in early July, followed by opportunistic purchases during the brief price recovery that peaked around $69,000. This pattern of buying suggests a strategic approach by these large holders, reflecting a strong belief in an eventual bullish breakout after the current phase of consolidation between $50,000 and $70,000.

**Why Are Bitcoin Whales So Optimistic?**

The recent accumulation aligns with expectations of a potential interest rate cut by the US Federal Reserve. Traders are forecasting an 86.5% chance of a rate reduction from the current 5.25%–5.50% range to 5.00%–5.25% at the September meeting, as per CME’s FedWatch tool.

This speculation follows remarks by Federal Reserve Chair Jerome Powell, who hinted at the possibility of a rate cut as soon as September, pending favorable economic data. While the Fed has kept rates steady at 5.25%–5.50%, Powell emphasized that more positive data on inflation and labor markets would be necessary to support a rate reduction.

Additionally, renewed investment in stablecoins—digital assets pegged to external values like the US dollar—has boosted market sentiment. IntoTheBlock data shows a 2.11% increase in the total market cap of stablecoins, reaching $164 billion in July, the highest level since April 2022.

**The Market’s Resilience Despite Mt. Gox Transfers**

Recent Bitcoin price fluctuations have been partly driven by the liquidation of assets from the defunct Mt. Gox exchange. On Wednesday, Mt. Gox transferred $2.5 billion worth of Bitcoin, reducing its holdings from $9 billion to $3 billion. Historically, such large transfers have led to price declines, but Bitcoin’s price has remained stable despite these movements.

Analysts from Arkham Intelligence reported that 33,105 BTC were likely moved to BitGo for distribution to creditors. Despite the potential for increased selling pressure, many creditors are expected to hold their Bitcoin long-term. According to blockchain analytics firm Glassnode, the profile of these creditors suggests they are more likely to be long-term investors rather than sellers, which could mitigate significant downward pressure on the market.

Overall, Bitcoin’s stability amidst these substantial movements indicates a robust market and sustained confidence in its value, setting the stage for potential investment opportunities in the coming months.