Has Bitcoin’s Bearish Phase Ended? Is a Bull Market on the Horizon?
Recently, Bitcoin and the entire cryptocurrency market have experienced significant corrections, with Bitcoin dipping below $54,000 and altcoins facing substantial losses.
Several factors have contributed to the market downturn, chief among them being the negative news surrounding the compensation of BTC by the bankrupt Japanese exchange Mt. Gox.
Additionally, the German government has been selling seized Bitcoin. On Monday, the government transferred 16,309 Bitcoins to cryptocurrency exchanges and market makers. According to Arkham Intelligence, wallets associated with the German government still hold about 23,788 Bitcoins, indicating that more than half of the seized assets have been sold.
Moreover, since June, Bitcoin miners have been selling off their holdings. With their revenues halved, miners are compelled to sell BTC to survive or pivot their operations.
On the macroeconomic front, the Federal Reserve’s delay in cutting interest rates has strengthened the U.S. dollar, exerting downward pressure on Bitcoin priced in dollars.
As the impact of these negative factors begins to fade, the U.S. Bitcoin spot ETF is starting to see net inflows, and Bitcoin whales are beginning to accumulate.
Despite the recent spiral downward, some investors, particularly “whales,” continue to accumulate Bitcoin. Recent on-chain data from CryptoQuant indicates that these whales have amassed a significant amount of Bitcoin.
The “exchange net flow” metric shows that the outflow of Bitcoin from exchanges reached record levels in 2024. Over 46,000 Bitcoins, valued at more than $2.6 billion, have left exchanges, signaling a strong intent among holders to keep their Bitcoin for the long term.
As these bearish signals are gradually absorbed by the market, there are signs that Bitcoin’s bull market might return. The increasing accumulation by whales and the inflow into Bitcoin ETFs could indicate renewed confidence and a potential reversal in the market’s direction.
