Whales and Institutions Align Behind Bitcoin’s Bullish Setup

Bitcoin surged to a two-week high in early trading as market speculation over potential Federal Reserve rate cuts intensified, alongside a record level of accumulation from institutional investors. The price climbed above the $65,000 mark, marking one of the largest weekly gains in 2024. Analysts attributed the rally to a combination of macroeconomic optimism and increased on-chain activity indicating strong long-term positioning by large holders.

The recent price movement coincided with growing expectations that the U.S. central bank could begin easing monetary policy in the second half of the year. A majority of surveyed economists now anticipate at least one rate cut by year-end, contrasting with earlier forecasts for a prolonged tight policy stance. This has led to a shift in risk appetite, with Bitcoin benefiting from a broader move into higher-yielding and more volatile assets.

On-chain data also highlighted a significant increase in large wallet accumulation over the past two weeks. Whale addresses—those holding more than 1,000 BTC—showed a net inflow of over $4 billion, a record for this time of year. This trend was seen as a bullish indicator by market analysts, as it suggests long-term investors are positioning for further price appreciation. The inflow came despite a modest outflow from exchange wallets, which is typically associated with reduced short-term selling pressure.

Institutional demand for Bitcoin continued to gain momentum, with several major investment firms launching new products linked to the cryptocurrency. One firm reported a 30% increase in inflows into its Bitcoin spot ETF in the last quarter. These developments underscore the ongoing integration of digital assets into mainstream financial markets, with growing institutional legitimacy seen as a key driver of broader adoption.

Market observers noted that while the near-term outlook appears constructive, longer-term uncertainty remains tied to macroeconomic data and central bank policy decisions. Volatility is expected to persist as investors balance optimism over rate cuts with concerns over inflation resilience and global economic growth. However, the current on-chain and behavioral indicators suggest that Bitcoin may have more room to rise before facing significant resistance.

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