Bitcoin Dips to $61,000 as Whales Continue Accumulating

The price of Bitcoin has dropped to $61,000, meaning the market has been in a continuous decline for the past 3 days.

In the cryptocurrency sector, it can be seen that both physical and derivatives trading volumes have decreased due to concerns about the overall economic situation. The views of officials from the Federal Reserve have raised questions about whether interest rates can remain high.

Whales continue to buy Bitcoin

Bitcoin whales are buying at this time. Data from online data platform Santiment shows that in the price range of $61,000 to $64,000, large investors began accumulating BTC within the past 24 hours.

Investor groups owning between 1,000 and 10,000 BTC purchased an additional 15,000 BTC, estimated to be worth $941 million. Even though the price dropped to $62,000, the “whales” continued to accumulate with no signs of abating.

The buying action from “whales” is important for the bullish outlook of the entire cryptocurrency market.

Over the past two weeks, “whales” have reached peak holding levels, creating optimism about Bitcoin’s growth. However, market uncertainty appears to be prolonging the consolidation process.

Regarding the price outlook for the Fed and Bitcoin, Boston Fed President Susan Collins made a statement on Wednesday. Ms. Collins emphasized that cutting interest rates may take longer than expected. According to her, the US needs slower economic growth to curb inflation, which could lead to a decrease in demand.

The assertive stance of Fed official Neel Kashkari, despite the dovish approach of Fed Chairman Jerome Powell and the economic indicators tracked over the last week, has caused concern in the cryptocurrency market.

According to data from CME FedWatch Tool, it is likely that the US Fed will start reducing interest rates from September and may cut another 25 basis points in November and December.

Related: Bitcoin Lightning Network Is Shutting Down Its Current Version

Will the price of Bitcoin decrease?

As traders closed profits or liquidated long positions, Bitcoin’s price fell below $62,000 during US trading hours. Meanwhile, BTC price has dropped more than 5% today and more than 1% over the past 24 hours. A decrease in trading volume was also observed over the past 24 hours.

According to Kaiko, one of the major research firms in the market, meme tokens remain the top leveraged altcoin due to significant accumulation by whales and other investors.

Investors continue to buy meme coins like dogwifat (WIF) and Pepe Coin (PEPE) at the forefront of this bull market, expecting their prices to continue to rise.