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Bitcoin Whales Deploy More Funds During Dip, Creating 342 New Wallets

Albert Brown
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Bitcoin whales took advantage of the recent price dip, accumulating more assets and creating 342 new wallets.

Bitcoin has had a volatile week, briefly peaking at $100,400 on Monday before dropping below $94,400. Meanwhile, Bitcoin is recovering toward the $100K level again, highlighting ongoing market fluctuations.

Remarkably, large-scale Bitcoin holders, commonly known as whales, demonstrated notable activity amid this price movement.

342 New Bitcoin Wallets Created by Whales Amid Dip

Market data revealed that 342 new wallets holding more than 100 Bitcoin were created during the recent price decline. In particular, these wallets emerged as Bitcoin dropped from $104,000 to the $90K region.

Analysts observed that this trend aligns with the broader behavior of whales, who historically capitalize on price dips to bolster their holdings. 

Despite market volatility, the stable proportion of Bitcoin held by whales, as indicated in a chart by IntoTheBlock, points to long-term confidence among these investors. According to the market intelligence platform, whale holdings remained unchanged over the past 30 days.

Mixed Activity Among Investors and Retail

Meanwhile, the investor category saw significant activity growth over the past month, with holdings among mid-tier investors increasing by 2.69%. This suggests growing market participation and accumulation by these holders.

In contrast, retail participants, who dominate Bitcoin’s ecosystem, experienced a slight decline in holdings. Their share decreased by 0.23%, indicating reduced activity or minor sell-offs among smaller holders. 

Bitcoin Addresses Activity
Bitcoin Addresses Activity

Bullish Patterns and Price Projections

Amid these developments, technical analysis provided a positive outlook for Bitcoin’s long-term trajectory. Ali Martinez highlighted a bullish cup-and-handle pattern, a known precursor to significant price breakouts.

The chart depicted Bitcoin’s gradual recovery from its 2022 low of $15,200 to its recent highs, completing the cup formation. The subsequent consolidation between $50,000 and $70,000 formed the handle, culminating in a breakout above $69,000 in late 2024. Martinez’s analysis projected Bitcoin’s price to reach $275,000 based on this pattern.

Separately, Messari founder Ryan Selkis cited Bitcoin’s MVRV z-score to signal further upside potential. The current z-score of 3, well below the historical market top range of 7-10, supports Selkis’s assertion of significant room for growth. Specifically, Selkis stated he would not consider selling Bitcoin until it hits. $180K

Wall Street Expert Agrees XRP is the Greatest Opportunity for Generational Wealth

Sam Wisdom Raphael
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Wall Street Expert Agrees XRP is the Greatest Opportunity for Generational Wealth

A Wall Street analyst endorses a statement suggesting that XRP is among the greatest opportunities for investors to build generational wealth.

Notably, the sentiment was originally shared by Digital G, a market commentator, amid the ongoing market turbulence. For context, XRP has been a victim of the latest market correction, which wiped out over $1.7 billion in leverage positions from nearly 584,000 traders.

Data suggests that XRP faced one of the worst selloff campaigns for any cryptocurrency, especially on Coinbase. This triggered a massive 14.87% price collapse on Monday, with the altcoin closing the day at the lower end of the $2 price region.

XRP Represents an Opportunity for Generational Wealth

Amid these troubles, XRP has shown impressive resilience, which has helped to maintain optimism around it. As confidence in its potential prevails, Digital G, who was a regulated fund manager in the U.K., recently pointed out the importance of an investment in XRP.

He admitted that XRP represents one of the greatest opportunities for any investor to secure generational wealth. Moreover, he believes the two other cryptocurrencies with such potential are Stellar (XLM), an XRP rival, and XDC Network (XDC).

Interestingly, Wall Street analyst Linda P. Jones, a vocal XRP proponent, agreed with the commentary. According to her, she authored a book on the assets and how such investments could help investors build life-changing wealth. The wealth mentor was possibly referring to her bestseller “3 Steps to Quantum Wealth.”

Interestingly, all three assets focus on helping retail and institutions carry out efficient cross-border payments and financial transactions by providing fast, low-cost, and scalable solutions for transferring value.

XRP, XLM and XDC Potential 

Digital G’s sentiment is possibly due to the fact that these cryptocurrencies, especially XRP, have ecosystems looking to solve real-world problems in finance, such as remittances and settlement, and have partnerships with banks, governments, and enterprises.

While they underperformed in previous years, their recent price action confirms the potential for growth. For instance, XRP is up by more than 303% since November, while XLM has gained 448%. Also, XDC has skyrocketed 175% within the same timeframe.

As a result, several market analysts have presented lofty targets for these tokens. Recently, market analyst EGRAG argued that XRP was following Tesla’s 2018 trajectory, forecasting a 50% dump before a 3,500% uptick above $40. 

Meanwhile, last month, Charting Guy, a market commentator, called attention to a bullish price structure on the 1-month XLM chart which he believes could lead to a rally to $5. Earlier this month, Javon Marks set a breakout target of $0.1814 for XDC.

Bitcoin Shows Signs of Maturity with Reduced Volatility and Smaller Drawdowns

Albert Brown
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Bitcoin Shows Signs of Maturity with Reduced Volatility and Smaller Drawdowns

Recent analysis from on-chain data provider Glassnode reveals that the current Bitcoin market cycle is experiencing significantly lower average returns than previous cycles.

Bitcoin’s performance in the ongoing cycle, which began after hitting bottom in November 2022, shows notable changes in return on investment (ROI) and market volatility, according to data shared by the on-chain analytics firm.

The data compares the current cycle with the previous two bull markets, highlighting a transition in Bitcoin’s behavior as it matures into a larger, more stable asset class.

Bitcoin Seeing Least ROI

For example, from Bitcoin’s bottom in 2015 to the end of the cycle in 2018, it registered a 5.90X (590%) growth during that bull season.

The subsequent cycle, from 2018 to 2022, saw even more impressive gains, with Bitcoin registering a 10.47X (1,047%) price growth from the lows to the highs.

In contrast, in the current cycle, where Bitcoin bottomed at around $15K in late 2022, it has so far registered a 598% price growth, based on its recent all-time high of $104K.

According to Glassnode, this cycle is 26.94% below the average growth of the last two cycles.

Bitcoin Volatility Eases, Experiencing the Least Volatile Cycle

Meanwhile, regarding market volatility, the current cycle also stands out for its relative stability. When comparing drawdowns or peak-to-trough declines in price, Bitcoin’s volatility has significantly decreased. 

For instance, the average drawdown in the current cycle is -7.68%, much lower than the -16.24% average across all cycles.

Likewise, the maximum drawdown has been -26.25% since 2022, compared to a dramatic -71.15% drawdown during the 2011-2013 cycle.

This marks Bitcoin’s least volatile cycle to date, suggesting that the market is becoming more resilient and less prone to extreme price swings.

Bitcoin Seen as a More Stable and Institutionalized Asset Class

According to Glassnode, the combination of lower ROI and smaller drawdowns points to Bitcoin’s gradual transformation into a more stable, institutionalized asset.

These metrics suggest that Bitcoin is no longer as volatile as it once was, a crucial factor for attracting traditional investors and institutional players who demand more stability.

Essentially, Glassnode’s analysis underscores Bitcoin’s growing maturity as an asset class. While it may not produce the astronomical returns of previous cycles, it demonstrates resilience amid an increasingly standardized and regulated market environment.

Bitcoin Leverage Finally Easing as Analysts Predict Imminent Recovery

Sam Wisdom Raphael
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Bitcoin prices are finally stabilizing after a turbulent period that led to a massive liquidation event that impacted thousands of traders. 

BTC’s value dropped from over $100,000 to $92,000 within 12 hours on Monday, erasing $1.7 billion in leveraged positions from nearly 584,000 traders. However, it has since rebounded, trading above $98,000, with a 2% increase today to $98,661. 

Bitcoin Market Seeing Drop in Leverage

Amid the recovery, market data indicates a slowdown in volatility and a notable reduction in leverage across exchanges. According to CryptoQuant CEO Ki Young Ju, the BTC-USDT perpetual futures estimated leverage ratio has been steadily declining. 

This ratio, which measures the amount of leverage used in futures trading, fell from 0.511 on Dec. 8 to the current figure of 0.462. The recent ratio further represents a 24% drop from the 0.608 peak recorded on Nov. 21. 

BTC Estimated Futures Leverage Ratio for the USDT Pair Across All Exchanges
BTC Estimated Futures Leverage Ratio for the USDT Pair Across All Exchanges

Ju noted that open interest in BTC-USDT futures has decreased by 7% from its recent high, while exchange-held USDT balances have risen by 32% over the past month. 

Additionally, data shows that ERC-20 USDT tokens on exchanges have surged by 68% since Nov. 1, growing from 23.27 billion to 39.17 billion. This inflow of USDT on exchanges could provide more collateral if market participants use it for futures trading.

Notably, the recent reduction in leverage implies fewer high-risk positions, decreasing the likelihood of sharp price swings from liquidations. Meanwhile, the influx of USDT suggests increased buying power, which could fuel further price gains as traders deploy funds.

Liquidation Trends Reflect Price Recovery

In addition, recent data from Coinglass shows that liquidation volumes are declining, with short positions now facing more liquidations than long positions. 

Liquidation Data Coinglass
Liquidation Data | Coinglass

Over the last 12 hours, $92.41 million worth of positions were liquidated, with short positions accounting for 60.8% of this amount, or $56.21 million. In contrast, long positions accounted for $36.20 million. This suggests a market recovery, as bullish sentiment begins to strengthen.

Analysts Hold Mixed Bitcoin Recovery Outlooks

Meanwhile, market analysts and traders hold varying perspectives on Bitcoin’s next moves. Ali Martinez, a prominent analyst, pointed out a cup-and-handle pattern on Bitcoin’s weekly chart. 

He has maintained his optimism, predicting that Bitcoin could reach $275,000 if this pattern plays out. The analyst advised traders to buy dips and avoid excessive leverage to minimize risk.

Meanwhile, crypto trader XO stressed the importance of Bitcoin holding the $90,000–$91,000 range. He suggested that losing this range could lead to a pullback to $85,000–$87,000. However, XO leans toward continued price compression in the near term.

Interestingly, as BTC looks to recover, CryptoQuant analyst Mignolet highlighted that Coinbase’s spot market dominance remains relatively low, despite the exchange’s major role earlier this year. 

Following the approval of Bitcoin ETFs in January, Coinbase saw increased dominance, driving market gains during that period. However, during the latest rally in September and October, Coinbase’s influence declined, and it has not rebounded massively since.

Mignolet emphasized that while Coinbase liquidity remains important, Binance appears to be the more critical source of market liquidity driving the current rally. 

Here’s Why The Bitcoin $100K Price Milestone Favors Gold

Albert Brown
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Bloomberg commodity strategist suggests the recent Bitcoin price growth amid its ETF milestones could actually favor gold.

Following Bitcoin‘s recent $100,000 price milestone, the crypto market is largely optimistic, with most setting their sights on new upward targets. However, amid the wave of excitement, one Bloomberg analyst has offered a different outlook.

Be Careful What You Wish for?

For a long time, Bitcoin proponents have tried to sell the asset to traditional investors as gold, only more liquid and accessible 24/7.

With the launch of spot Bitcoin ETFs in the U.S. in January 2024, this narrative is now taking root. These ETFs have helped push the total value held by global spot Bitcoin ETFs to about $125 billion, closing in on gold’s $225 billion. To be sure, this growth has been a key contributor to Bitcoin’s recent rise.

However, according to a post today from Bloomberg Senior Commodity Strategist Mike McGlone, this growth presents a problem for the oranged-themed digital asset and an opportunity for the traditional store value when looking at ETFs. 

The analyst explained that at current levels, Bitcoin ETFs now offer a similar reward potential and headwinds as gold ETFs but with higher risks as the digital asset remains three times as volatile as the metal. As such, the analyst posits that investors may be more likely to choose gold when forced to pick between the two.

Meanwhile, there are other reasons McGlone believes gold looks promising compared to Bitcoin in the short term.

Bitcoin Overstretched?

In a separate post on Wednesday, Bloomberg’s McGlone highlighted that, unlike gold, Bitcoin’s price action appears to be highly correlated with U.S. equities, which he argued appeared overstretched.

For context, Bitcoin and the S&P 500 have surged to new highs in the month following Donald Trump’s election victory, while gold has declined.

The analyst suggested that investors could flee to the traditional store of value in the possible event of a significant stock market rout. 

The analyst drew parallels between current market conditions ahead of the incoming Donald Trump administration and the president-elect’s first time in office. During Trump’s tenure, gold jumped 52% from over $1,200 to over $1,800. Still, the U.S. stock market was no laggard during the time, as the S&P 500 also gained 50%.

Billionaire Investor Ray Dalio Predicts Global Debt Crisis, Backs Investment in Bitcoin and Gold

Lele Jima
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Billionaire Investor Ray Dalio Predicts Global Debt Crisis, Backs Investment in Bitcoin and Gold

Ray Dalio, founder of the popular hedge fund Bridgewater Associates, advocates investing in hard assets like Bitcoin and gold to hedge against an upcoming debt crisis. 

The billionaire investor made the recommendation in a keynote address on December 10 at the Abu Dhabi Finance Week (ADFW). 

According to Dalio, investing in these hard assets- Bitcoin and gold- will serve as a hedge against economic uncertainty and global debt. While backing Bitcoin and gold, the veteran investor disclosed plans to avoid debt assets, especially bonds. 

Upcoming Debt Crisis 

Notably, Dalio predicted that most major economies, such as the U.S. and China, will experience unsustainable debt levels, leading to a future decline in the value of money. 

In his view, economic debt is among the five key forces capable of impacting the global economy. The other four forces include money, countries’ internal and external political conflicts, the economy, and acts of nature, like natural disasters. 

The veteran investor encouraged people to focus on the big forces impacting global economies instead of embroiling themselves with insignificant issues. 

Furthermore, he advocated for a strategic and diversified investment approach in addressing threats and opportunities.

Currently, Dalio mentors the committee overseeing Bridgewater Associates’ investment strategies. He assumed this role after stepping down as the company’s chairman in 2021. 

Dalio Engagement with Crypto 

Dalio was not a fan of crypto in its early days. Notably, in 2020, he expressed skepticism about its long-term success, noting that it would not succeed as many investors anticipated. 

He also took a swipe at Bitcoin, saying the asset is not an effective medium of exchange. In 2021, Dalio predicted that several countries might ban cryptos due to their risky nature. 

Interestingly, his views have changed over the years. Two years after criticizing Bitcoin, he urged investors to allocate up to 2% of their portfolio to BTC to hedge against inflation. 

Meanwhile, Bitcoin is not the only crypto that has captured Dalio’s interest. As reported earlier, the billionaire investor revealed he previously invested small funds in Ethereum (ETH), the second-largest cryptocurrency by market cap. 

Binance Founder Changpeng Zhao Says Bitcoin Will Surpass $850,000: Here’s Why

Elendu Benedict
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Binance Founder Changpeng Zhao Says Bitcoin Will Surpass $850,000: Here’s Why

Another ambitious Bitcoin price prediction emerges after Binance co-founder Changpeng Zhao asserted that the asset could skyrocket by more than 8x.

Notably, Bitcoin’s growing traction has come with higher price expectations as several industry leaders have thrown in their thoughts on the asset’s short-term and long-term performance. The former Binance CEO recently predicted Bitcoin’s future outlook, insisting it would trump the market cap of gold.

Bitcoin to $850,000: CZ

In his session at the Bitcoin MENA 2024 conference in Abu Dhabi, Zhao insinuated that Bitcoin would surge past $850,000. He drew the price assertion from the theory that Bitcoin would surpass gold’s $16 trillion market cap.

The former CEO stated that the Bitcoin growth trajectory would trounce that of gold, as the former is a new technology and the latter an old financial tool. He insisted that comparing Bitcoin to gold does not add up, as the digital asset has several advantages and “could do more” than the precious metal.

As a result, he maintains that Bitcoin would birth an industry larger than gold’s empire. Notably, if it attains the market cap of gold, which is currently $18.25 trillion, Bitcoin will trade at $921,976 per coin.

CZ Emphasizes the Superiority of Bitcoin to Gold

The Binance co-founder emphasized the superiority of Bitcoin to gold, stating the premier crypto asset is a limitedly capped asset. He also noted that Bitcoin is easier to spend and store, making it a better currency.

Furthermore, CZ buttressed the transactional acumen of Bitcoin, stating that holders can use the asset to transfer wealth seamlessly compared to gold. With this analogy, the co-founder inferred that Bitcoin would outperform gold in the near term.

Notably, Zhao is not the only enthusiast who has predicted that Bitcoin will outgrow gold. Anthony Scaramucci and Howard Lutnick earlier talked up the comparison, insisting that Bitcoin is a superior asset to gold.

Dogecoin Set for Take Off: Analysts Call Last Buy Opportunity After Dip to $0.36

Abdulkarim Abdulwahab
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Dogecoin Set for Take Off: Analysts Call Last Buy Opportunity After Dip to $0.36

The price of Dogecoin revisited lows at $0.3668 on Tuesday when a bearish storm rocked the market. 

While Dogecoin is in a recovery phase, it is still within the $0.39 region. Analysts are warning investors to seize the window to purchase the meme coin before it goes parabolic again.

Technical analyst Crypto Scofield expressed this sentiment in a post on X. He warned the community that this may be their last chance to buy Dogecoin before it takes off again. According to him, missing this opportunity could mean missing out on major pumps that have historically followed Dogecoin’s dips.

Notably, before Dogecoin reached its current position, it traded as low as $0.089 in September and $0.1015 in October. However, Dogecoin spent most of November breaking higher levels not seen since 2021 before losing momentum at $0.4835 in December.

Investors who joined Dogecoin before the pump benefited from a streak of green candles. While Dogecoin’s price has since dropped by 24% from its multi-year peak, analysts continue to urge investors to seize the opportunity to buy Dogecoin at a discount before the next wave.

Commentators like Crypto Scofield are targeting a $3 price for Dogecoin in the near-term outlook.

Dogecoin Set-up Shows Attractive Risk-Reward Ratio

Other analysts have similarly voiced bullish sentiments on Dogecoin amid the recent dip. According to analyst Rose, Dogecoin’s current setup offers an attractive risk-reward ratio for long-term holders.

This analyst called for a long position on Dogecoin, urging market participants to take profits once the asset reaches $0.70, around where it peaked in the last cycle, and $0.9977, which would mark an unprecedented price territory for DOGE.

Meanwhile, the analyst cautioned that if the bearish trend continues, holders should consider closing their long positions at $0.32 to minimize risk.

In a separate commentary, analyst Kriss Pax assured market participants that there is nothing wrong with Dogecoin. He stated that while Dogecoin has been in a period of sideways price action for about a month, there is nothing fundamentally wrong with it, and it will soon resume its bull run.

Image
Dogecoin chart by Kriss Pax

Prominent analysts like Ali Martinez have argued for a potential 4,400% run in Dogecoin to $18 post-dip. While speculative, this projection is inspired by historical trends.

Shiba Inu Retests Critical Support Level as Cup and Handle Pattern Suggests SHIB Surge to $0.00003237

Lele Jima
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Shiba Inu Retests Critical Support Level as Cup and Handle Pattern Suggests SHIB Surge to $0.00003237

Crypto analyst Asteks predicts an imminent Shiba Inu rally to $0.00003237 following the formation of a bullish cup and handle pattern on SHIB’s chart. 

Cup and Handle Pattern Forms on SHIB Weekly Chart 

The expert made the projection yesterday, referencing the formation of a cup-and-handle pattern on Shiba Inu’s weekly chart. The emergence of the cup-and-handle pattern typically represents a bullish signal for Shiba Inu. 

According to the chart, the cup section began in March 2024, when Shiba Inu surged to $0.000045, to November when it surpassed the $0.3 mark after a correction. The handle section reflects Shiba Inu’s surge above the $0.33 mark this month before its pullback to around $0.26. 

Asteks suggests that a potential breakout might be the next play for Shiba Inu, with the chart pointing to a target of $0.00003237. At the current price of $0.00002697, Shiba Inu must surge by 20.02% to clinch the $0.00003237 target. 

Shiba Inu Slumps to $0.000024 Amid Bitcoin-Led Drawdown 

The Bitcoin-led market downturn has wreaked devastating havoc on Shiba Inu’s performance. Following Bitcoin’s rollercoaster movement yesterday, Shiba Inu dipped to $0.00002434 before rebounding above the $0.000026 level. 

Priced at $0.00002697, Shiba Inu has witnessed a slight decline of 0.31% in the past 24 hours. However, the doggy-themed token has incurred a double-digit loss of 11.15% in the past week. 

Imminent Breakout Looms for Shiba Inu 

Besides Asteks, other crypto experts have recently taken to X to predict an imminent surge for Shiba Inu. 

In a recent tweet, popular memecoin-focused market observer Whales HQ forecasted that Shiba Inu is preparing for a massive breakout. The accompanying chart shows an ascending triangle pattern on the 4-hour chart, signaling an imminent upward movement for Shiba Inu. 

Furthermore, popular community expert Shib Spain pointed out that the token is retesting a critical support level around the $0.000024 mark. If this support holds, the expert projects that Shiba Inu could rally significantly to $0.0000520. This target reflects a 92.8% surge from the current price of $0.00002697. 

Mantra Teases Range Breakout: Will OM Price Top $5?

Albert Brown
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Mantra Teases Range Breakout: Will OM Price Top $5?

With a potential range breakout on the horizon, the Mantra (OM) crypto token is eyeing a new all-time high, with $5 as the key psychological level.

As Bitcoin’s price fluctuates near the $98,000 mark, a minor intraday recovery has paved the way for a bullish comeback in Mantra. Over the past 24 hours, the OM token has increased by 3.08% and is approaching a market cap of $4 billion.

Currently priced at $4.20, the Mantra token is gearing up for a possible all-time high. Will the bullish momentum push it past the $5 mark?

Mantra Price Analysis

On the daily chart, the Mantra price trend has exhibited a sideways shift after a massive bullish jump in mid-November. Between November 14 and 17, the price surged 204%, from $1.3891 to $4.2314.

Mantra Price Chart
Mantra Price Chart

Following the formation of four consecutive bullish candles, the OM price trend has shifted to a sideways pattern. On the 4-hour chart, this sideways movement creates a consolidation range between $3.45 and $4.23.

A bullish reversal within this consolidation range is now challenging the overhead resistance. This “glass ceiling” coincides with the 23.60% trend-based Fibonacci level at $4.1934.

With a rapid recovery in play, the chances of a bullish breakout for Mantra have significantly increased, especially with Bitcoin’s minor recovery. The breakout is supported by a positive MACD crossover and improving market sentiment.

Additionally, the simple moving average (SMA) lines on the 4-hour chart—50 and 100 SMAs—show a positive alignment, further supporting the bullish outlook.

Will OM Token Reach $5?

Using trend-based Fibonacci levels, a breakout from the consolidation range could propel the altcoin toward a new all-time high. The 38.20% Fibonacci level at $4.6524 is a potential price target.

However, the 50% Fibonacci level at the $5.00 psychological mark is a favorite among traders and investors. On the downside, crucial support levels are at $3.93 and $3.75.

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