Market Analysis

Long-term Bitcoin holders have seen their profits vanish as the market cools, with data showing a significant shift in profitability towards short-term holders. Despite the downturn, reduced selling pressure could signal a potential bottom for the market.

Despite billions in realized losses and a market downturn, large Bitcoin holders (whales and sharks) are aggressively accumulating BTC. On-chain data suggests this accumulation, combined with signs of a market bottom, could signal a trend reversal.

The crypto market is holding steady ahead of the U.S. Federal Reserve’s key interest rate decision. Bitcoin and Ethereum are posting modest gains as investors anticipate a potential rate cut, which could drive more capital into riskier assets.

Bitcoin experiences sharp volatility with double rejections, leading to market-wide losses, while Zcash surges 15%. Key US labor market data due today could influence Fed rate expectations.

Bitcoin has been rising for two weeks and reclaimed the $90,000 level, but Bitfinex analysts warn of weakening demand and the risk of a price drop, with 5 to 7 million bitcoin currently in loss.

Bloomberg ETF expert Eric Balchunas argues that comparing Bitcoin to the 17th-century Dutch tulip mania is flawed, citing Bitcoin’s resilience over 17 years and multiple market cycles, unlike the short-lived tulip bubble.

Analysts suggest the biggest risk to Bitcoin’s price is not the size of the Fed’s balance sheet, but the significant lag in how monetary policy affects the economy. This delay could create short-term headwinds for crypto before potentially fueling a longer-term rally.

Central banks are buying gold at record rates amid economic uncertainty, with October marking the highest monthly increase this year. This trend has renewed discussions about Bitcoin’s role as ‘digital gold’ and whether it will benefit from gold’s surge.

The article explores how Donald Trump’s potential appointments of crypto-friendly figures like Kevin Hassett to the Federal Reserve and Scott Bessent as Treasury Secretary could trigger a major shift in U.S. monetary policy. This new strategy, focused on aggressive growth and potentially higher inflation, could create a favorable environment for Bitcoin and other assets, potentially causing their prices to surge.

Bitcoin is consolidating around the $90,000 level as market sentiment remains fragile. Meanwhile, Ethereum whales are aggressively buying the dip, signaling potential bottoming, while corporate treasury acquisitions for ETH have slowed significantly.