Large Bitcoin holders have resumed significant buying, taking advantage of the cryptocurrency price drop towards the end of 2024, as reported by Blocktrends analyst Cauê Oliveira.
Institutional Investors and Bitcoin Accumulation
According to analyst Cauê Oliveira, more than 34,000 Bitcoins, worth roughly $3.2 billion, have been accumulated by institutional investors, providing buying pressure for the market's recovery. This accumulation followed a sell-off where wallets holding between 1,000 to 10,000 BTC dumped about 79,000 Bitcoins in the week after December 21. This came just days after Bitcoin hit an all-time high of over $108,000 on December 17, driven by the U.S. Federal Reserve's interest rate cut.
Economic Factors and Market Impact
Bitcoin's price dropped to $94,900, down 2.3% on the day, amid a broader crypto market dip. The drop followed U.S. jobs and economic data that dampened expectations of further interest rate cuts. Bitfinex analysts noted that sell-side liquidity in Bitcoin markets is rapidly shrinking, suggesting that the worst of the price pressure might be over.
Analyst Predictions for 2025
Analysts remain optimistic about a record rally in 2025, fueled by pro-crypto policies expected from President-elect Donald Trump and increasing Bitcoin adoption by nation-states. Fidelity Digital Assets research analyst Matt Hogan predicted in a January 7 report that more nation-states, central banks, and sovereign wealth funds will look to establish strategic positions in Bitcoin. Blockware analysts suggest that U.S. Bitcoin reserves could drive prices to $150,000 in a worst-case scenario and over $400,000 in the best case.
The resumption of Bitcoin buying by large holders amid the price decline may serve as an important factor for upcoming market changes in 2025. Significant transformations in the cryptocurrency sector are expected due to political and institutional actions.
