- The fake news about Bitcoin continues at full speed, but they hit a snag.
- While using the news to burst LONGs, the big whales continued to accumulate BTC.
- Bitcoin moved with the US CPI, and CoinOtag was the first to share the news in Turkey.
Despite a positive surprise in the US Consumer Price Index (CPI) yesterday, Bitcoin suffered a major blow. This was due to rumors that the US government sold 9,800 BTC related to Silk Road. Since then, the market has been trying to recover from the shock. Here are the details.
Our teams have determined that there has been no change in the US government’s #Bitcoin wallet. Arkham’s 2nd fake news ✋🏻 https://t.co/vbDralQbYa
— CO NEWS (@coinotag) May 10, 2023
Despite Bitcoin FUD, Whales’ Favorite!
However, one group of investors shows no fear: whales. Wealthy investors are considered one of the most reliable indicators that it is a good time to buy Bitcoin. On-chain analyst Axel Adler said, “BTC Accumulation and Distribution – no change. Big players continue to buy BTC from small players.”
The following chart shows that investors with more than 5,000 BTC in the last 30 and 90 days (along with smaller investors with less than 10 BTC) have bought large amounts, while all other groups have left BTC.
What Do Bitcoin Whales Know?
Of course, speculation can only be made about what Bitcoin whales know that others don’t. But the fact is that Bitcoin saw an upward trend yesterday after the TFE announcement, until the fake news (manipulation?) broke with the US government’s Bitcoin sale.
However, yesterday’s TFE pressure could have much more consequences for market bets that the Fed will make an early turn. The market is currently betting on three interest rate cuts (3x 25 basis points, 4.25-4.50%) by the end of the year.
The US annual #inflation rate was announced as 4.9%. (Expectation 5.0%)
— CO NEWS (@coinotag) May 10, 2023
Charlie Bilello, Creative Planning’s chief market strategist, highlighted on Twitter that the US consumer price index fell from 9.1% in June 2021 to 4.9% in April 2022. According to the famous analyst, the reason for this decline is low inflation rates in heating oil, gasoline, used cars, gas supply, medical care, clothing, new cars, food at home, and electricity.
YoY change inflation | Source: Twitter @charliebilello
What Will Happen to Bitcoin Price?
Bitcoin price fell to the $26,730 price zone with yesterday’s Arkham fake news, but after CoinOtag teams investigated the incident and shared a statement that the news was fake with the whole world.
Although the price closed above 27,500 again, we are seeing BTC movement towards significant buy levels again due to the cleaning of LONG liquidity. A potential drop during the day could bring us to the 27,133 level. Especially for a serious rise, candlestick closures above 28363 are required. The 50-day MA is quietly waiting for the bulls at 28,551, but the Order Block can take action to leave SHORTs in trouble, which can have a positive impact on BTC investors.
