Fed Rate Cuts Spurs $1.6 Billion Bitcoin Buying Spree Among Whales, Can BTC Reach $70,000?
The Fed rate cuts have boosted the confidence of Bitcoin investors, with whales buying up to 1.6 billion BTC since the macro decision. With such a bullish outlook, there is the possibility that the flagship crypto can soon reach $70,000.
Fed Rate Cuts Prompt Buying Spree Among Bitcoin Whales
The Fed rate cuts have prompted a buying spree among Bitcoin whales. These investors bought over 1.6 billion worth of Bitcoin following the macro decision on September 18. Data from the market intelligence platform IntoTheBlock shows that these whales have bought 25,510 BTC since September 19.
This accumulation trend is unsurprising, as the 50 bps interest cut has provided a bullish outlook for risk assets, including Bitcoin. The flagship crypto is expected to experience a significant price surge since more liquidity will flow into its ecosystem as investors can access more money following the Federal Reserves quantitative easing (QE).
With Bitcoin projected to enjoy massive moves to the upside, a rise to $70,000 soon enough is possible. The flagship crypto already flipped the $60,000 price level as support following the Fed rate cuts and is holding comfortably above that level. As expected, more liquidity is already flowing into the BTC ecosystem, as is evident from the $1.6 billion purchase by these whales.
Therefore, it shouldnt be long enough before the crypto reaches the $70,000 price level. Bitcoin reaching this level is significant as it could pave the way for BTC to hit a new all-time high (ATH). The $70,000 price level has acted as strong resistance since the crypto dropped below this level after rising to its current ATH of $73,000 earlier in March.
However, Bitcoin could easily break above this resistance this time, considering it has more bullish momentum thanks to the Fed rate cuts.
History Could Repeat Itself
In addition to the Fed rate cuts, Bitcoins historical trend provides a bullish outlook for the flagship crypto and suggests that a rise to $70,000 should happen soon enough. Crypto analyst Ali Martinez recently noted that Bitcoin enjoyed a 61% and 171% price increase in 2016 and 2020, respectively. These years were both halving years.
The analyst further revealed that Bitcoins price action this year mirrors 2016 and 2020. As such, history could repeat itself, and the flagship crypto could enjoy gains similar to those in previous years.
Moreover, Q4 of each year is historically when Bitcoin enjoys its most returns. Therefore, BTC should witness significant price gains heading into the last quarter of this year. Meanwhile, the post-halving rally is also around the corner, which could prompt this price surge to $70,000.
At the time of writing, Bitcoin is trading at around $63,900, up over 1% in the last 24 hours, according to data from CoinMarketCap.
Source: NewsBTC.com
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