Bitcoin (BTC) price lost its recovery momentum and dropped below $64,000 before successfully finding a stable technical support zone. Despite the weak short-term market sentiment, giant investors or “whales” are taking advantage of this price drop as a golden opportunity to increase their digital asset accumulation.
Santiment analyst data reveals that the holdings of corporate sharks who own a minimum of 1,000 BTC have now surged to their highest level since March with a total accumulated volume of 7.17 million BTC. This group’s dominance covers 35.82% of the total market supply, in line with Darkfost analyst report confirming that wallets holding more than 1 BTC also recorded a new record high of more than 16.8 million BTC.
In contrast, the reaccumulation activity by retail investors is moving at a much slower pace with current holdings of around 1.7 million BTC. Market analysts assess the slowdown in retail investor momentum as a result of their actions to liquidate profits during the previous surge. At the same time, some capital has been found to have shifted to more systematic Bitcoin ETF instruments for management.
In addition to wallet technical factors, the direction of the cryptocurrency market has been drastically influenced by the results of the latest Federal Open Market Committee (FOMC) meeting. Bitunix analyst Dean Chen revealed that Bitcoin's fall below the liquidity defense line proves that investors are now restructuring their portfolios to face a higher interest rate environment for a longer period.
Chen stressed that the impact of the Federal Reserve (Fed) policy projections led by Kevin Warsh is now playing a role as the main driver of the crypto market, outweighing the impact of Middle East geopolitical news. Warsh, who prioritizes inflation control, is expected to maintain tight liquidity, thus strengthening the value of the US dollar and Treasury bond yields and putting risky assets such as crypto under high projection pressure.
