Whales Bet Big on Bitcoin Despite Market Weakness

• Whales accumulate Bitcoin despite recent market dip and macroeconomic pressures.
• Dormant Bitcoin addresses reactivated, signalling renewed market participation.

Bitcoin has struggled to maintain momentum in the first few days of “Uptober,” a month typically marked by bullish sentiment. Despite high community expectations for Bitcoin to surpass $70K, the flagship cryptocurrency recently hit a 16-day low. Over the past week, Bitcoin has dropped 6%, primarily due to macroeconomic factors.

Currently, Bitcoin is trading at $61,211, with a modest decline of 0.10% in the last 24 hours. Trading volume is down 13%. Amid the broader market slump, whales are making significant moves, and savvy retail traders are viewing the dip as an opportunity. In the past two days, four smart Wrapped Bitcoin (WBTC) traders with an 80% win rate have purchased 307 WBTC ($18.8 million) on-chain, signalling confidence in future cycles.

Moreover, adding to the mix, a dormant address containing 100 BTC ($6.1 million) was activated after nearly 11 years. Meanwhile, large transfers were recorded: 2,500 BTC ($150.4 million) moved between unknown wallets, 998 BTC ($60.4 million) was sent to Coinbase, and 1,087 BTC ($65.9 million) was transferred to OKX.

Factors Remain Bullish For BTC

Macroeconomic developments continue to dominate the narrative. The latest U.S. jobless claims data delivered few surprises, with low unemployment boosting confidence in the labour market. Analysts at QCP Capital highlighted the strong correlation between crypto and U.S. equities, suggesting that a recovery in stocks could lead to a crypto rebound. They remain optimistic about Bitcoin’s potential for an “Uptober” rally, despite ongoing geopolitical tensions.

Meanwhile, factors such as potential U.S. interest rate cuts, China’s liquidity injections, and customer repayments from FTX totalling $6 billion are seen as potential tailwinds for Bitcoin in the coming weeks. The upcoming U.S. presidential election also offers a historical boost for the market, regardless of the winner.

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