- Bitcoin and Ethereum avoided losses after US stocks plummeted over the past 24 hours.
- Investors fear that the US Federal Reserve may need to tighten monetary policy longer than expected, increasing selling pressure on risk assets.
- Bitcoin whales have accumulated $6.73 billion worth of BTC, traders await volatility.
Bitcoin (BTC) price held its ground despite the US stock market bloodbath on Thursday. Large-wallet investors started accumulating BTC, buying the asset at a discount through the dip. Accumulation by whales signals incoming volatility in the largest crypto asset by market capitalization.
Also read: Ethereum rival Cardano sharks gobble up 331 million ADA tokens, fuels fear of mass sell-off
Bitcoin could witness a spike in volatility following the recent whale accumulation
Bitcoin large-wallet investors, also known as whales, have scooped up $6.73 billion in BTC, fueling anticipation of incoming volatility in the asset’s price. Over the past 24 hours, Bitcoin price held steady at $16,845 despite the bloodbath in the US stock market seen on Thursday.
Investors are reconsidering the US Federal Reserve (Fed)’s policy decisions. There is a likelihood that the central bank could pivot anytime soon, to a more dovish monetary policy. This could typically result in a price decline in risk assets like Bitcoin.
Positive economic data has re-kindled fears that the US Federal Reserve may need to tighten monetary policy longer than expected. This could increase the downward pressure on risk assets like Bitcoin and Ethereum, as 2022 draws to an end.
In Messari’s Ryan Selkis’ 168-page report with his 2023 predictions for cryptocurrencies, the analyst believes the market direction is influenced by macroeconomic outlook and regulation.
Whales influence capital supply in crypto markets. Therefore, renewed accumulation of BTC by large-wallet investors implies Bitcoin price could experience volatility before the end of 2022. Large wallets scooped up 400,000 BTC through crypto winter since November 9, based on data from crypto intelligence platform Whalemap.
BTC accumulation by whales
Bitcoin price at risk of decline after Death Cross
Bitcoin price chart below reveals a Death Cross pattern, where the 50-day Exponential Moving Average (EMA) crosses under the 200-day EMA. The Death Cross in the chart below was seen in the second week of November and resulted in a steep decline from $20,000 to $16,000 within the same week.
The most recent Death Cross in the third week of December is a clear bearish re-test for Bitcoin. Capo of Crypto, a leading technical analyst, argues that Bitcoin’s downtrend is intact and the crypto market as a whole is not prepared for fresh upcoming losses.
Experts on crypto Twitter remain firmly bearish.
BTC/USDT 4H Binance price chart
Bitcoin price could invalidate the bearish thesis if BTC crosses the resistance levels at the 50-day EMA at $16,884 and 200-day EMA at $17,141. Bitcoin price outlook for the end of 2022 remains bearish.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin: Retraces to around $75,000 after hitting new all-time high
Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.
Ethereum price jump spurs most significant ETF inflows in six weeks
After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory
The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.
Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory
Paul Grewal, Coinbase's Chief Legal Officer, has asked the US Securities & Exchange Commission to reconsider how it regulates cryptocurrencies now that Donald Trump has been elected to a second term as president.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.