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Bitcoin’s recent surge of 11% to reach $83,500 has attracted significant attention, as influential whales and long-term holders absorb selling pressure.
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Despite the tumultuous state of the macroeconomic environment and rising bond yields, Bitcoin has shown resilience, with large wallets accumulating over 100k BTC since March.
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“The ability of Bitcoin to rebound amidst market challenges underscores its growing perception as a potential safe haven,” noted a recent report from COINOTAG.
This article explores Bitcoin’s remarkable rise to $83,500, driven by whales and long-term holders, amidst a volatile macroeconomic landscape.
Bitcoin defies market expectations amidst economic turmoil
To analyze the current state of Bitcoin, it’s crucial to understand the related U.S. economic dynamics. Traditionally, as the bond market falters, yields increase. This relationship has shifted recently, leading many to speculate about the longer-term impacts on cryptocurrency markets.
On April 9, the U.S. 10-year Treasury yield spiked above 4.5%, marking its highest level since mid-February, as investors reacted to updated tariff policies. The fear triggered by unexpected shifts in the bond market has intensified volatility.
Source: Trading Economics
As a significant amount of U.S. debt matures, projected refinancing needs of $7 trillion to $9.2 trillion in 2025 could create further economic strain. This context has resulted in a challenging environment for the U.S. dollar, traditionally viewed as a safe haven.
Amidst this backdrop, Bitcoin’s ability to reclaim critical resistance levels emphasizes its role as an alternative asset. Following a week of intense selling that saw prices dip below $75k, its recovery to $83,500 showcases a strong bullish sentiment among buyers.
Whales playing a significant role in Bitcoin’s market dynamics
Recent data from CryptoQuant indicates that influential market players, or whales, have been instrumental in stabilizing Bitcoin during recent sell-offs. Since March, wallets containing between 1,000 and 10,000 BTC have amassed approximately 100,000 BTC.
Simultaneously, long-term holders have increased their accumulated BTC to 13.60 million, reflecting an impressive 420,000 BTC rise over the same timeframe. This mass acquisition suggests a strong belief in Bitcoin’s long-term value.
As it stands, the Net Unrealized Profit/Loss (NUPL) stands at 0.68 for long-term holders, suggesting that on average, these investors find themselves with about 68% in unrealized profits.
Source: Glassnode
Considering Bitcoin’s current trading price of $83,500, long-term holders have an average buy-in price of approximately $49,702.38. Nonetheless, the NUPL has not transitioned into the euphoric phase, an indicator that usually precedes market fluctuations.
While the 90-day tariff pause offers short-term reassurance, it is imperative to remain cautious. The ongoing U.S.-China trade conflict and potential exiting by large holders pose risks that could introduce volatility in the market.
Conclusion
In conclusion, Bitcoin’s recent performance amid macroeconomic uncertainty highlights its evolving role in the financial landscape. The continued investment from whales and long-term holders suggests confidence in Bitcoin’s prospects, yet investors must remain vigilant about potential pullbacks as market conditions fluctuate. The resilience of Bitcoin in these turbulent times could foreshadow its potential as a robust asset class in the future.
