In an important sign of confidence, large Bitcoin (BTC) holders, often considered market movers, increased their holdings significantly in July.
Major Bitcoin Holders Accumulated $5.4 Billion Worth of BTC in July Amid Market Volatility
Data from blockchain analysis firm TradingView revealed that these holders, defined as addresses with at least 0.1% of BTC's circulating supply, added over 84,000 BTC, equivalent to $5.4 billion at current market prices.
This marks the largest single-month accumulation in BTC terms since October 2014.
The buying spree took place amid significant two-way price volatility, with major holders taking advantage of the early July slump when BTC prices fell below $55,000.
Strategic Accumulation Points to Bullish Sentiment
This accumulation indicates a strong belief among large holders that the current consolidation phase between $50,000 and $70,000 will eventually lead to a bullish breakout.
Many analysts share this optimistic outlook, predicting that a possible interest rate cut by the Federal Reserve in September could increase liquidity and drive investors into riskier assets, including cryptocurrencies.
“A rate cut in September will create bullish sentiment and increase liquidity in the market in general, which will be positive for Bitcoin and other cryptocurrencies,” said Jag Kooner, Head of Derivatives at Bitfinex.
He noted that this scenario could lead to increased ETF inflows as investors seek higher returns.
*This is not investment advice.