Bitcoin might have posted the deepest correction since the FTX crash in November 2022, dipping over 20% from its all-time high of around $74,000. However, Glassnode analysts, while sharing their preview on X, remain cautiously optimistic.
Bitcoin has declined by 20% since its peak in March, but Glassnode maintains a bullish stance.
Glassnode highlights that despite corrections, the Bitcoin macro uptrend remains remarkably resilient, with relatively shallow declines. The platform also notes an improvement in liquidity, reducing volatility. However, significant price rallies will likely depend on fundamental factors rather than just structural support. Glassnode suggests that historical patterns indicate market events as potential catalysts for price movements. Furthermore, the platform emphasizes that the robust macro trend has contributed to decreased volatility, indicating a more mature market with growing institutional involvement.
As institutions set their sights on BTC, whales are actively accumulating.
Confidence stays robust as on-chain data indicates that a single whale has capitalized on the recent price dip to amass coins. Over the past week alone, this whale acquired more than 100 BTC, bringing their total purchases for the month to over 7,257 BTC. Such aggressive accumulation hints that, even amidst multi-year highs, Bitcoin might still be undervalued according to the whale’s assessment.
More Bitcoin tailwinds may be on the horizon. For instance, former US President Donald Trump has begun accepting cryptocurrency donations in his ongoing campaign this week, marking a bullish shift in stance after previously dismissing Bitcoin.
Meanwhile, European regulators seem receptive to approving Bitcoin as an investable asset within Undertakings for Collective Investment in Transferable Securities (UCITS) funds. If successful, this move could potentially channel billions of euros into Bitcoin from European institutions. This development is significant, especially considering that banking giants like Morgan Stanley and BNP Paribas are already exploring avenues for their clients to invest in BTC.
On a broader scale, the increasing M2 money supply in the United States, coupled with concerns from the Federal Reserve about high inflation, may further drive demand for Bitcoin. Similar to gold, BTC is viewed as a safe haven and a hedge against inflation due to its deflationary supply design.