Accumulation Myth of Bitcoin Whale and Macroeconomic Impact

Recent data has highlighted an interesting trend in the cryptocurrency market as Bitcoin whales significantly increased their holdings during the price decline. This strategic move by large investors appears to have played a crucial role in the current market recovery, as Bitcoin once again surpassed the $100,000 mark. The accumulation of whales during a price decline According to cryptocurrency analyst Martinez, Bitcoin whales have created 342 new wallets, each containing over 100 BTC, during a price drop from $104,000 to $90,000. This behavior demonstrates a strategic approach of these influential players, taking advantage of market corrections to strengthen their positions. The accumulation reflects confidence in the long-term value of Bitcoin, which may contribute to a rapid price recovery as seen today. Macroeconomic context and its impact A larger economic environment is also a key factor in the revival of Bitcoin. Investors closely monitor US economic data, especially the November Consumer Price Index (CPI), which shows an annual inflation rate of 2.7%, slightly higher than October's 2.6%. The consistent inflation figures are in line with market expectations, fueling speculation that the Federal Reserve may lower interest rates at the upcoming FOMC meeting. The headline CPI rose by 0.3% on a monthly basis, up from 0.2% in October. Meanwhile, the core CPI - which excludes volatile items such as food and energy - remained stable at 3.3% compared to the same period last year and 0.3% compared to the previous month. These stable inflation figures have bolstered market sentiment, leading to expectations of continued monetary easing. Impact on traditional and cryptocurrency markets The announcement of the CPI report has witnessed contrasting reactions in traditional financial markets. The 10-year Treasury bond yield of the United States increased by 0.12% to 4.228%, signaling bond investors' cautious stance. On the other hand, the Dollar Index slightly decreased by 0.06% to 106.020. In the cryptocurrency market, Bitcoin rose 3.72% to $100,332.94, reaching a 24-hour high of $100,442. Despite a 14.89% decrease in trading volume, reflecting previous negative sentiment, the recovery signals increasing investor confidence. Altcoins such as Ethereum (ETH), XRP, and Solana (SOL) also witnessed gains, strengthening the positive outlook for the overall digital asset landscape. Market sentiment and future forecast The Fear and Greed Index, a popular measure of market sentiment, has risen to 73, reflecting an optimistic increase. Martinez has set a price target of $135,000 for Bitcoin, supported by continuous interest from whales and favorable macroeconomic conditions. When the market eagerly anticipates the announcement of the Producer Price Index (PPI), deeper insights into inflation trends could impact the policies of the Federal Reserve and thus, the cryptocurrency market. If macroeconomic indicators remain favorable, Bitcoin and other cryptocurrencies may continue to grow. Conclusion The current dynamics in the cryptocurrency market emphasize the interaction between the behavior of large-scale investors and macroeconomic factors. The accumulation of Bitcoin whales during the recent downturn highlights their important role. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)