Bitcoin Whales Bought 34,000 BTC After the December Price Drop, Targeting $150,000

Bitcoin (CRYPTO: BTC) whales have purchased 34,000 BTC following the cryptocurrency’s December price drop, Blocktrends’ Cauê Oliveira shared on Jan. 8 through CryptoQuant.

What Happened: As reported earlier by CoinChapter, wallets holding between 1,000 and 10,000 BTC sold off 79,000 BTC, starting soon after Bitcoin’s peak price of $108,000 on Dec. 17, following an interest rate cut by the U.S. Federal Reserve.

The sell-off caused a 15% market correction, bringing Bitcoin prices below $95,000. However, according to Oliveira, Bitcoin whales used the price dip to accumulate BTC through smaller trades, increasing their holdings during the market’s consolidation.

“After the sell-off, the 7-day balance change turned positive again, signaling a return of large-scale purchasing. This trend showcases institutional confidence in the future of the cryptocurrency.”

At the time of writing, Bitcoin trades near $94,900, seeing a 2.3% daily decrease alongside the wider crypto market. U.S. economic reports on jobs and other metrics have dampened expectations for further interest rate cuts, impacting market sentiment.

On Jan. 6, Bitfinex analysts noted that sell-side liquidity in Bitcoin markets is rapidly decreasing. They believe the downward pressure on Bitcoin prices has likely eased, suggesting a potential stabilization in the market.

“Sell-side liquidity is the total amount of BTC offered to sell on an exchange at a specific price point. As this liquidity decreases, it signifies fewer traders or institutions are willing to sell their BTC at the given price level.”

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Crucial Sell Walls At Higher Prices Could Be A Sign Of Strength

The decreasing sell-side liquidity suggests that large-scale traders may be accumulating Bitcoin at lower prices, potentially impacting the cryptocurrency’s price floor.

This accumulation could be a sign of strength in the market, as traders may be anticipating higher prices in the future and are willing to hold their BTC at lower price points.

Projections from Blockware analysts suggest a U.S. Bitcoin reserve could push prices above $150,000. In an optimistic scenario, they estimate Bitcoin could exceed $400,000.

Meanwhile, Bitcoin’s market movements are closely watched as nation-states increase their adoption of the cryptocurrency.