Why Has the Bitcoin Price Become Too Volatile? Here’s When It May Hold the Support at $60,000 & Thrive

The post Why Has the Bitcoin Price Become Too Volatile? Here’s When It May Hold the Support at $60,000 & Thrive appeared first on Coinpedia Fintech News

Ever since the Bitcoin price dropped heavily in the first few days of the month, the volatility rate has jumped extensively. With every minor jump, the markets are experiencing massive pullbacks, bringing the levels back to their initial positions. With the latest drop, the possibility of a sustained recovery may have been paused for a while. However, from a wider perspective, the BTC may be considered a golden opportunity to accumulate at discounted prices. 

In an interesting update, the U.S. government has reportedly transferred nearly 10,000 BTC worth $591 million to the Coinbase exchange. These are suspected to have been procured from the confiscated Silk Road. This may have triggered the sellers, who have been mounting acute selling pressure since the previous trading day.  

Besides, the fresh CPI rates emerged lower than the expected rates of around 2.9% YoY, which is the lowest since 2021. The decline in rates has increased the possibility of Fed rate cuts in the coming days. The historical pattern appears to have been altered since the beginning of the year with the launch of the spot BTC ETF and the inclusion of institutions into the crypto space, which has changed the market dynamics. 

 What to Expect from the Markets in the Coming Days?

The markets have become largely dependent on the institutions and the whales or the larger wallet holders. Any movement within the wallets held by them has highly impacted the BTC price rally and the entire crypto market. As per the latest on-chain data shared by Glassnode, these large wallet holders have begun to accumulate yet again. 

The previous time these wallets accumulated BTC was when the price marked a new ATH above $73,750. Since then, the price has faced acute distribution, which has kept up the selling pressure over the crypto. However, with the resurgence of the accumulation, the hopes of a new ATH have been revived. It has to be noted that these large wallets have often been linked to ETFs, which are showing signs of reversing back to accumulation. 

The pullbacks are usually considered short-term price action, which may offer a good opportunity to accumulate. Hence, the Bitcoin (BTC) price may receive the required bullish push in the coming days, but only after the prevailing accumulation reaches its end.