Bitcoin whales appear optimistic as they ramp up accumulation ahead of the U.S. Consumer Price Index data release. According to data from IntoTheBlock, the number of whale transactions, each worth at least $100,000 in Bitcoin, surged from 12,560 to 16,240 between September 7 and 9.

The increased whale activity in Bitcoin followed a price drop below the $54,000 mark amid a broader selloff. Over the past week, Bitcoin whales have moved over $70 billion worth of the asset. Typically, increased whale activity can lead to significant price fluctuations. However, in this case, large holders seem to be accumulating Bitcoin, driven by increased inflows.

The inflow of large holders plummeted from 11,570 to 1,100 BTC on September 7 and further declined to 469 BTC the next day, indicating a massive selloff. Yet, by September 9, whale inflows had risen to 1,580 BTC, suggesting the selloff might have ended.

Not just the whales, but retail investors are also accumulating Bitcoin. Data from IntoTheBlock shows a net outflow of over 6,000 BTC from exchanges on September 10. Bitcoin has risen 3.5% and is currently trading at $56,950, having briefly touched a local high of $58,000 earlier today and consolidating near the $57,000 level.

Investors are showing bullish sentiment as the U.S. CPI data, which measures the country’s inflation rate, is expected to come in at 2.6%. If the inflation rate for August meets or is lower than this expectation, economists predict a 50 basis point interest rate cut could occur this week. This potential rate cut could foster a bullish momentum for both the cryptocurrency and stock markets.

Stay updated with the latest cryptocurrency news and trends at Global Crypto News.

Post Views: 8