Key Points
- Bitcoin mining difficulty and US money supply have hit new all-time highs.
- Bitcoin whales purchased over 84,000 BTC in July, the largest acquisition since October 2014.
Bitcoin’s mining difficulty has reached an all-time high, a development that necessitates increased computational power and could potentially impact profitability.
This might be due to heightened activity on the Bitcoin blockchain. The market cap of BTC stands at $1.25 trillion, a noteworthy allocation given the $900 trillion of global wealth.
Bitcoin’s Resilience Amid Market Fluctuations
A recent $3 trillion drop in stocks due to recession fears underscores Bitcoin’s durability. Despite the plummeting of traditional assets, Bitcoin remains a central focus.
Many investors undervalue the potential of cryptocurrency, making it an ideal time to consider adding BTC to a diversified portfolio for long-term gains.
In July, Bitcoin whales, defined as holders owning at least 0.1% of total Bitcoin’s supply, purchased over 84,000 BTC. This purchase, the largest since October 2014, amounted to $5.4 billion.
While many investors were selling their holdings, these large holders were accumulating, according to IntoTheBlock. This substantial increase underscores the strategic moves of whales during market fluctuations and their confidence in Bitcoin’s long-term potential.
Potential Downtrend in BTC’s Future
A look at Bitcoin’s Moving Average Convergence Divergence (MACD) shows a lower high in 2024 compared to 2021. This divergence suggests a potential bearish trend is on the horizon, with a confirmation from price action making successive equal highs.
This bearish trend signaled by the MACD is a warning for short-term traders that Bitcoin may soon change direction, targeting the critical support range of $28k – $37k.
Bitcoin’s new all-time high in 2024 may be more a result of monetary inflation than actual value growth.
