Will the price of Bitcoin increase? After a Dramatic Crypto Crash, Will Crypto Recover Enough to Hold a Mega Trump Rally? Can altcoins recover?
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and altcoin holders were pummeled for the rest of this week. Some are confident as the crypto market reels from what is clearly a wave of relentless selling pressure from whales.
Technically, the upward trend established in the fourth quarter of 2024 remains. If the world’s most valuable coin finds solid footing above $90,000, the total crypto market cap could recover, surpassing the $3.7 trillion level recorded at the end of December 2024.
(Source)
When it comes to altcoins, Ethereum, Solana, XRP and others including Cardano and Avalanche are facing headwinds. Buyers must drive ETH above $4,000, XRP above $2.5, and SOL above $270 for interest to be renewed.
Despite the current situation, buyers have the upper hand, especially when viewed from a top-down perspective.
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When will cryptocurrency prices rise again? Whales are selling – will Bitcoin price rise?
However, given the wave of falling lows and dumping, will the recovery be immediate? According to Lookonchain, whales are divesting from their crypto assets and choosing cash as the trading environment evolves.
Earlier today, a dormant Bitcoin wallet sent all coins to Coinbase Prime. Over the past six years, the address has held its 500 BTC worth over $46 million. As prices fell as low as $90,000 yesterday, it appears the whale chose to cash out while the technical candlestick formation still favored the bulls.
A portfolio that has been dormant for 6 years has deposited all 500 $BTC ($46.87 million) in #CoinbasePrime 2 hours ago.
This wallet received 500 $BTC 6 years ago, when the price of $BTC was $7,000. pic.twitter.com/jK1AkMrA2c
– Lookonchain (@lookonchain) January 10, 2025
On the same day, another whale detached over 245,000 SOL worth over $45 million and sent it to Binance. Usually, any transfer to a centralized exchange is interpreted as bearish.
On Binance, the whale was likely sold, exchanged for stablecoins or cash. The problem is that there is no way to determine whether the whale sold immediately or is still holding SOL, waiting for an opportune moment.
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Investors are not just abandoning Bitcoin and Solana. Data shows that whales are also liquidating popular coins. A whale sold 85 billion PEPE on January 9 for $1.51 million USDC. The decision to exit at this price means the whale recorded a loss of $1.74 million. Even with this dump, the whale still holds 180.8 billion PEPE worth over $3.2 million.
Market turmoil has also had an impact on institutions.
Fidelity, the asset manager, sent ETH to Coinbase via Cumberland. As of January 10, Lookonchain data reveals that the company has deposited over $213 million worth of ETH.
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Additionally, looking at Soso Value, all nine US spot Bitcoin ETFs saw net outflows on January 9. Institutions have repurchased more than $582 million worth of BTC-backed stocks, including more than 1,300 BTC sold by iShares alone.
(Source)
Spot Ethereum ETFs have not been spared either.
Over $159 million worth of ETH was repurchased on January 9.
(Source)
A large portion of the outflows came from Grayscale’s Ethereum Mini Trust, which saw a net outflow of $8.2 million.
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Will the price of Bitcoin increase? What’s Next for Bitcoin and Top Altcoins?
Historically, January has been a challenge for cryptocurrencies and financial markets. Often, prices tend to rise sharply before correcting.
But in answer to the question “will Bitcoin prices increase?” » analysts are optimistic and predict that crypto and Bitcoin prices will record a strong start to 2025.
Tailwinds will come from generally strong market sentiment. Optimists peg Bitcoin at $250,000 by 2025, citing increased institutional adoption, a supportive regulatory environment, and favorable macroeconomic conditions.
Prices will rise if the Federal Reserve cuts rates in the first quarter of 2025 and if Donald Trump continues to honor his election promises.
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