Bitcoin Price Prediction As $40 Billion Trading Volume Rushes In – Are Whales Buying?
Bitcoin price prediction continues to remain unchanged, despite the fact that the world’s largest digital asset by market capitalization has been in the news recently due to the recent increase in trading volume. With a trading volume of over $40 billion in recent days, the market is buzzing with activity, and many investors are wondering what this could mean for the future of Bitcoin.
In this update, we will explore the impact of this increase in trading volume on the price of Bitcoin and analyze the role whales play in the current market scenario.
Crypto Fundamental Outlook: Binance, Kraken and Coinbase
Despite concerns among some crypto traders about potential regulatory shocks in the near future, one group of high-profile investors remains uncertain. Following the temporary suspension of US dollar deposits and withdrawals from Binance, a crisis scenario could arise if no US banks step up to offer support.
While there may be more clarity on the situation next week, the recent $30 million settlement between Kraken and the US Securities and Exchange Commission (SEC) resulted in a sudden drop in market prices.
Following the settlement, Coinbase CEO Brian Armstrong issued a warning that the SEC could potentially ban crypto betting altogether. Against this backdrop, recent comments from SEC Chairman Gary Gensler suggest that crypto companies will be required to provide full disclosures, further supporting the possibility of such actions being taken in the future.
In fact, Gensler went so far as to state that compliance with US laws regarding full and faithful disclosures may be the only way for crypto companies to remain viable.
Analysis of the role of whales
Whales are large investors who hold a significant amount of a particular asset and have the ability to significantly influence the market with their actions. In the cryptocurrency market, the activities of whales can have a significant impact on the price of digital assets, including Bitcoin.
Recent data and statistics suggest that the current increase in trade volume may be due to the involvement of whales in the market. The analysis of their activities provides valuable insight into the market trend and can help investors make informed decisions.
Bitcoin whales, individuals who hold over $1 million worth of BTC, took advantage of a price drop by buying more at current prices. Data from the chain reveals that this buying spree was particularly high after the November 2022 FTX collapse.
The behavior of these whales suggests that the negative sentiment surrounding Kraken’s suspension of crypto betting services will be short-lived and that they see an opportunity to buy significant amounts of BTC below the $22,000 threshold.
IMF: El Salvador’s ‘Limited’ Bitcoin Use Reduces Perceived Risks
The IMF has warned El Salvador to exercise caution in expanding the government’s involvement with Bitcoin, as the digital currency’s speculative nature has sent prices plummeting.
Despite the country’s “limited” use of Bitcoin, the IMF emphasized the risks to El Salvador’s fiscal sustainability, consumer protection and financial stability.
The IMF highlighted the need for increased transparency in both Bitcoin transactions and the state-owned Chivo wallet’s financial condition. As Bitcoin’s use as legal tender in El Salvador could grow, the IMF advised the country to reconsider plans to issue tokenized bonds, which pose legal and financial risks.
IMF advises El Salvador to avoid issuing tokenized bonds
The IMF recommended that El Salvador refrain from issuing tokenized bonds due to their legal and financial risks. The statement underscored the speculative nature of crypto markets and the country’s fiscal vulnerability, highlighting the need for caution in expanding the government’s exposure to Bitcoin.
The IMF called for greater transparency in the financial state of the Chivo wallet, as well as El Salvador’s Bitcoin transactions.
PayPal Halts Stablecoin Project After Reported $600 Million in Crypto Holdings
According to the report, PayPal held $291M in Bitcoin and $250M in Ethereum, with an additional $63M in other digital assets such as Bitcoin Cash and Litecoin (no breakdown provided). The company noted that a third-party custody service provider held these assets in its name for the benefit of its customers.
PayPal identified the uncertain regulatory environment as a business risk, citing the unclear legal status of some cryptocurrencies and the potential need for additional licensing due to the evolving regulatory landscape. The company expressed concern that its current and future cryptocurrency customer offerings could result in additional regulatory liabilities.
The lack of regulatory clarity in the US has been a growing concern for crypto companies, as seen in the recent enforcement of Kraken by the SEC, which resulted in a $30 million fine for the exchange.
Bitcoin price
The BTC price is $21,810 with a 24-hour trading volume of $15.3B. It is up 0.45% in the last 24 hours with a #1 ranking, $420.7B market cap, 19.3M in circulation and a max supply of 21M BTC coins.
Bitcoin breached a key support zone at $21,875 on Saturday, raising the possibility of a bearish trend in BTC. A bullish breakout of this level could lead to the next resistance level at $22,300 or $22,850.
However, if it fails to break below the $21,750 level, it may continue to decline to the $21,200 level. If BTC’s price breaks below this level, it could plunge to $20,600, which is its immediate support.
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