Large Bitcoin Holders Added $5.4B in BTC in July, Data Show

According to IntoTheBlock, large Bitcoin holders added more than 84,000 BTC of Bitcoin in July, the most since October 2014.

The accumulation was characterized by opportunity hunting during the price decline in early July.

Big Bitcoin {{BTC}} holders, who are adept at timing market movements, showed their confidence by increasing their coin holdings at the fastest pace in years in July and took advantage of the two-way price volatility.

According to data tracked by blockchain analytics firm IntoTheBlock and TradingView, large investors, or addresses holding at least 0.1% of BTC’s circulating supply, have snapped up more than 84,000 BTC worth $5.4 billion at the current market price. That’s the largest single-month tally for BTC since October 2014.

Accumulation was characterized by opportunity hunting during the early July price drop below $55,000, followed by brief pauses in the recovery to $69,000. BTC closed July with a meager 3% gain, according to CoinDesk data.

Large investors resorted to strategic accumulation, taking advantage of the price declines in July. (IntoTheBlock, TradingView)

Strategic accumulation is likely an indication of a strong belief that the long consolidation phase between $50,000 and $70,000 will eventually end with a bullish breakout and that the initial rally from $16,000 will continue.

Analysts are optimistic about Bitcoin’s price prospects.

“A September rate cut would create bullish sentiment and could increase liquidity in the market overall, which would be positive for Bitcoin and other cryptocurrencies as investors seek higher yields outside of traditional assets. This could lead to upward pressure on Bitcoin’s price and increased ETF inflows as investors look to take advantage of a more favorable environment for riskier assets,” Bitfinex Head of Derivatives Jag Kooner said in an email.

On Wednesday, Federal Reserve Chairman Jerome Powell said interest rates could be cut as early as September, stressing that economic data should support potential renewed liquidity easing. The central bank kept its benchmark interest rate steady at 5.25%-5.50%, maintaining the status quo as expected.

“The Fed is pushing for a ‘soft landing’ and if the data allows them to make cuts, and they are certainly moving in that direction according to their forecasts, then we think they will seize the opportunity. We expect the authorities to shift monetary policy from ‘restrictive’ territory to ‘slightly less’ restrictive from September, with further cuts in November and December,” ING said in a daily note to clients.

The bullish sentiment is also driven by renewed capital inflows through stablecoins or digital assets whose values ​​are tied to external references such as the US dollar.

The story continues

According to CCData, the total market value of stablecoins increased by 2.11% in July to $164 billion, the highest level since April 2022. “This is the highest monthly increase in stablecoin market value since April and reflects new capital inflows into the markets, as reflected by the positive price action of digital assets in July,” CCData said in a report shared with CoinDesk.

Kooner said the fading impact of negative news was reassuring for bulls.

“There is a lot of confidence in the market right now, especially since even potentially negative news like the Mt. Gox Distribution, the German Government sell-off, and recent significant On-Chain moves have failed to significantly impact the Bitcoin price downward,” Kooner said.