Bitcoin regained $25,000 after a late Wednesday dip, fueled by fears about a renewal of central bank hawkishness later this year, sent the price below the threshold. BTC was recently trading at about $25,171, off 3.1% over the past four hours, part of a wider crypto selloff. Despite the recent regulatory turmoil hitting crypto markets, larger holders of bitcoin have not been reducing their bitcoin holdings. Data from on-chain analytics firm Glassnode, shows that unique addresses holding between 100-1,000 BTC have increased their BTC holdings since the U.S. Securities and Exchange Commission’s (SEC) announced lawsuits versus Binance and Coinbase.
We have to remember that the crypto market is a relatively small market, and a few hundred million dollars can move the market for a few percent, said Ruslan Lienkha, chief of markets at Web3 crypto and fiat service provider YouHodler. So let’s see the following days if it is really a downward trend or just a single whale sell off.
Markus Levin, co-founder of blockchain geospatial network XYO Network, wrote that despite the Fed’s hawkish, post-announcement comments, he believed that has bottomed already for its current four-year cycle.
But nothing is certain in this market, especially when it comes to crypto, he added. If we do enter recession territory, then we should be prepared for even more unpredictable movements with Bitcoin and other assets that are further along the risk curve.
The data coincides with funding rates that remain positive for BTC as well as a decrease in BTC on centralized exchanges. While not necessarily a bullish signal, the data implies that large bitcoin investors are content to sit on their positions at the moment.