Bitcoin and altcoins continue to be rocked by macroeconomic and geopolitical uncertainty, but data shows bulls continue to buy each dip.
Bitcoin’s (BTC) rally to a new all-time high, and the subsequent consolidation suggests that the bulls are not rushing to the exit as they anticipate another leg higher. According to an X post by Santiment, the rise has been supported by the Bitcoin whales holding between 1,000 and 10,000 Bitcoin who have “accumulated 266K more $BTC since the start of 2024.”
It is not only the whales who are buying. The spot Bitcoin exchange-traded funds have enabled traditional finance companies to invest in Bitcoin. Bloomberg analyst Eric Balchunas said in a X post that two United States financial advisers invested $20 million each in the Fidelity Wise Origin Bitcoin Fund (FBTC), overtaking the previous high investment of $17 million put by an adviser in BlackRock’s iShares Bitcoin Trust (IBIT).
Although analysts are bullish for the long term, the short term looks uncertain. Fidelity Digital Assets believes that Bitcoin is no longer “cheap” and is trading at fair value. The company downgraded its medium-term outlook for Bitcoin from “positive” to “neutral.” The investment firm’s director of research, Chris Kuiper, said in a X post that Bitcoin is at the “halfway point” of the market cycle. He added that a large portion of the gains are historically seen “in the latter half of the cycle.”