Bitcoin Whales Go on a $1.6 Billion Buying Spree After Fed Rate Cuts: Can BTC Reach $70,000?
Fed Rate Cuts Fuel Bitcoin Whale Buying Spree
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The recent Federal Reserve interest rate cuts have injected a surge of confidence into the Bitcoin market, prompting a massive buying spree among whales. These large investors have poured over $1.6 billion into Bitcoin since the Fed’s decision on September 18th, according to data from market intelligence platform IntoTheBlock.
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This accumulation trend is no surprise, as the 50 bps interest rate cut has created a bullish outlook for risk assets, including Bitcoin. The cryptocurrency is poised for significant price gains as more liquidity flows into its ecosystem, allowing investors access to greater capital following the Federal Reserve’s quantitative easing (QE).
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Could Bitcoin Hit $70,000?
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With Bitcoin projected to experience substantial upward momentum, a rise to $70,000 is a real possibility. The flagship cryptocurrency has already flipped the $60,000 price level, establishing it as strong support, and is holding comfortably above that mark. As expected, this whale activity is a clear sign that more liquidity is flowing into the BTC ecosystem, fueling further price increases.
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Reaching $70,000 would be a significant milestone for Bitcoin, paving the way for a potential new all-time high (ATH). This price level has served as a strong resistance since the crypto dropped below it after reaching its current ATH of $73,000 earlier this year. However, given the current bullish momentum fueled by the Fed rate cuts, Bitcoin could easily break through this resistance.
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History Repeating Itself?
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In addition to the Fed rate cuts, Bitcoin’s historical trend offers a bullish outlook for the flagship cryptocurrency, suggesting that a rise to $70,000 is a likely scenario. Crypto analyst Ali Martinez notes that Bitcoin enjoyed price increases of 61% and 171% in 2016 and 2020, respectively, both of which were halving years.
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Martinez further observes that Bitcoin’s price action this year mirrors that of 2016 and 2020, indicating that history could repeat itself, potentially leading to similar gains for the cryptocurrency. Moreover, Q4 of each year historically sees Bitcoin experiencing its largest returns. Therefore, BTC should witness significant price gains heading into the last quarter of this year. The upcoming post-halving rally could also fuel this surge to $70,000.
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At the time of writing, Bitcoin is trading at approximately $63,900, up over 1% in the last 24 hours, according to data from CoinMarketCap.