Bitcoin whale demand is skyrocketing, contributing to price increases. Will BTCUSD be poised for $90,000? The Bitcoin hash rate has hit record levels.
Recent trends show that Bitcoin prices dropped significantly by nearly 30% from all-time highs over the past three months, prompting extensive liquidations. However, as prices regain momentum, the hash rate is reaching unprecedented peaks.
Despite a recent drop from $82,000, on-chain data suggests resilience. CryptoQuant analysts indicate that Bitcoin might be in the initial stages of a price correction, potentially boosting the prices of notable Solana meme coins.
In their analysis, it was found that large investors, deemed Bitcoin whales, are increasing their purchases. This uptick in demand comes alongside Bitcoin’s sideways price movement, indicating that prominent long-term holders—likely institutions or affluent individuals—are still engaging in transactions at spot prices, fostering considerable confidence.
Such activity could establish the groundwork for Bitcoin to aim for $90,000, possibly even reaching previously uncharted heights of around $110,000.
Bitcoin Whales Buying Aggressively: Implications for BTCUSD
According to CryptoQuant, addresses retaining between 1,000 and 10,000 BTC are expanding at a rate that surpasses the 30-day moving average.
This trend indicates that these whales are acquiring more coins recently, exceeding the levels typical of the previous months.
Large investor demand for Bitcoin is accelerating. Balances of wallets holding 1K to 10K BTC are rising faster than their 30-day average. This is typically bullish and signals strong investor confidence. CryptoQuant.com
This positive divergence serves as a clear signal that high-net-worth individuals and institutions are accumulating coins at the current spot rates, possibly due to their belief that Bitcoin is undervalued. CryptoQuant also pointed out that historically, prices trend upward whenever this divergence occurs, which bodes well for altcoins and selected cryptocurrencies.
Currently, Bitcoin is under pressure, receding 27% from its January 2025 high of nearly $110,000. In recent times, BTCUSD has been consolidating within a narrow range between $84,000 and $74,000.
The $90,000 mark is pivotal—it must be convincingly surpassed for Bitcoin bulls to set their sights on $100,000; otherwise, the coin might plummet to approximately $74,500 or the 2021 highs.
If Bitcoin whales continue to accumulate by buying on each dip, a close above $88,000 could stimulate demand and elevate sentiment and prices. However, if it proves to be just a bluff, Bitcoin could fall below the 2021 highs, potentially reversing all gains made in Q4 2024 before potentially dropping to $50,000.
Bitcoin Hash Rate Increasing: Miners Intensifying Efforts
The surge in hash rate to fresh highs correlates with the increasing interest from Bitcoin whales. This metric reflects the computational power contributed to the network. As of April 9, the hash rate surpassed 100 EH/s, marking an all-time high according to Blockchain.com data.
Industry players like Marathon Digital regularly invest in equipment and enhance their computing power to handle transactions and confirm blocks in exchange for a share of the block rewards.
Despite a downturn in the previous quarter, the disparity between hash rate growth and declining prices suggests confidence among miners that prices will rebound. Consequently, they are investing in more energy-efficient machinery to manage more blocks and enhance revenue.
This rising hash rate amidst price declines indicates that the recent market sell-off—exacerbated by global uncertainties linked to Donald Trump’s tariffs—may represent a healthy market correction, presenting savvy investors with an opportunity to buy at lower prices.
Evidence indicates that long-term holders are stepping in to make purchases while short-term speculators are exiting by selling at a loss.
Long-term holders typically include institutions and seasoned investors, and their engagement at spot rates indicates a resurgence in ‘classic redistribution behavior.’
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