Bitcoin Dips Below $64K Again: Here’s How Whales Reacted

After showing signs of recovery, Bitcoin (BTC) lost momentum and dipped below $64,000 earlier today before finding support there.

While short-term sentiment weakened, the largest BTC holders appeared unfazed, using the decline as a buying opportunity.

Whale Accumulation Returns

Bitcoin whales holding at least 1,000 BTC have increased their combined holdings to 7.17 million BTC, according to Santiment’s latest findings. This is the highest level recorded since March 14. These large holders now control 35.82% of Bitcoin’s available supply, while the number of wallets holding at least 1,000 BTC stands at 2,044.

Additionally, crypto analyst Darkfost revealed that addresses holding more than 1 BTC have increased their combined holdings to a new all-time high of over 16.8 million BTC. The total supply held by this group continues to rise.

Darkfost explained that this trend could be linked to Bitcoin’s gradual institutionalization, although he stressed that such a development should be viewed from a long-term perspective.

Retail investors are also showing signs of renewed accumulation, but at a slower pace. This group is currently estimated to hold around 1.7 million BTC, which remains below the peak recorded in December 2023. The analyst went on to add that some retail participants may have taken profits during previous rallies, while others could have shifted their exposure to Bitcoin exchange-traded funds, which are easier to manage.

Despite these differences, both large holders and retail investors appear to be increasingly viewing the current market environment as an opportunity to accumulate Bitcoin.

Fed Takes Center Stage

Markets reacted strongly after the latest FOMC meeting. Bitcoin dropped below its “liquidity defense line.” Bitunix analyst Dean Chen said these moves suggest that investors are adjusting portfolios for a longer period of high interest rates rather than expecting an economic slowdown or easier monetary conditions. In a statement to CryptoPotato, Chen said that Federal Reserve policy is becoming a bigger driver of crypto markets than Middle East developments.

The analyst also warned that tighter liquidity, a stronger dollar, and rising Treasury yields could increase pressure on risk assets in the months ahead.

 “Now, Warsh has explicitly anchored policy priorities to inflation control and rebuilding Fed credibility, meaning liquidity expectations could continue to tighten in the coming months. If the dollar remains strong and Treasury yields continue to climb, capital will increasingly favor the greenback and fixed-income assets, leaving risk assets to face higher valuation pressures.”

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