Bitcoin faced a few new lows in August. Even after the current blows, BTC has suffered a lot. It looks like Bitcoin accumulation trends are favorable. The number of Bitcoin key whale addresses saw considerable growth.
The key whale addresses of Bitcoin surged to almost 15, 847
Santiment is a cryptocurrency behavior analytics platform. It released a chart. It indicated Bitcoin whale addresses’ accumulation trend. As per the chart, it saw a solid increase in the number of such whale addresses in the last month. The chart indicated a rise of up to 103 more whale addresses within this time.
The last time Bitcoin saw this surge was in February. The asset traded between $38k and $44k. The 103 rise in huge whale addresses brings the overall number of addresses holding 100 to 10,000 Bitcoin to 15,847. Such whale accumulation came when Bitcoin broke below the support of $20k. Sentiments usually remained bearish of late in the middle of the inauspicious market realities.
As seen on the chart, there is a significant correlation between the price of Bitcoin and the growth in whale addresses. The past rally of last year, November, was in tandem with a substantial increase in whale addresses. The rally lost all steam in the previous months. There was a respective fall in whale addresses. The current surge may be a promising indicator of an impending breakout.
The speech of Jerome Powell contributed to the current dip in Bitcoin
Bitcoin fell along with the rest of the cryptocurrency markets. It followed some hawkish comments from Jerome Powell, the Federal Reserve Chair. His speech’s effect was observed in the conventional stock market. Significant stocks took one nosedive on Friday. Losses spilled to the weekend.
Before his speech, the markets hung on by one thread. The comments from Powell pushed these markets more below. BTC fell below the zone of $21K on 27th August, with the last line of defense being $20K. Yet the weekend brought more dips as Bitcoin fell under the support of$20K.
Yet the ecosystem of Bitcoin recovered in several areas. Such aspects include network challenges, hash rate, and miner payouts. The hash rate of BTC spiked by almost 10 % in the last month. It strengthened the resistance of the network to attempts of double-spending. The network challenges increased for the first time since June. It was because of this. It means that creating a new Bitcoin block will become very difficult.
At the time of the bear market, many small investors increased their efforts of investment. Such increased actions demonstrate their desire to fulfilling their long-term goal to own a whole Bitcoin. Even after high costs of operation, the significant increases in mining revenue reassured the mining of BTC as a viable business. Lower prices of mining equipment enable BTC miners to expand their current infrastructure. Only 2 million Bitcoin are left for mining.
With an increase in mining revenues, cryptocurrency mining firms’ stock prices reportedly increased by almost 120 % in the past month. Marathon Digital Holdings, Core Scientific, and Hut8 Mining Corp revealed rising stock prices. Each performed at least 95 % better than this year in June. On 11th August, the results of quarter 2 showed a 1601 % year-to-date increase in all self-mined BTC. Recently, BTC mining firms dealt with many factors. It impacted the production of Bitcoin. The profitability of Bitcoin got impacted. Lower pieces of digital assets and higher costs of energy were among such impediments. The issues may have occurred due to the combined impacts of the Texas heat wave and the conflict between Russia and Ukraine.
Conclusion
The asset consolidated around the such zone on Sunday. Yet it did not trade above the level of $20K throughout Monday. It pumped in a lot of fears of more falls. Renowned cryptocurrency analysts forecasted a price target of $16k in the upcoming weeks. As per him, Bitcoin may touch $19K. The community must regard that as one indication of the $16k price indication. Currently, it is trading at $20 053. It saw a decrease of 7.36 percent in the last one week. If you are new to Crypto trading and investments, then you must check the Bitcoin trading platform at official website.