Outside Source
Now that the dust from Trump’s inauguration has settled and the market is anticipating the first big crypto move by the new US president, on-chain data reveals that BTC could be poised for another breakout rally soon.
The two major factors that could propel such a price surge are the growing whale activity, as well as the robust network.
BTC Whales Keep Buying
It has been a wild few months in the cryptocurrency space. It all started with the US elections when the self-proclaimed crypto president, Donald Trump, won a decisive victory against the Democrat rival. BTC and the rest of the market shot up immediately.
Despite some shockwaves and substantial turbulence on the way up, bitcoin managed to break through several barriers and ultimately shot up to over $100,000 for the first time ever in December. More volatility ensued in the following weeks, including a price dump to under $90,000 last Monday, but ultimately, the asset’s bull run endured, and it recorded a new all-time high on inauguration day of over $109,000.
Although Trump failed to mention crypto during his speech, which was followed by an expected correction, BTC’s price has managed to remain within six-digit territory and is now a few grand away from charting a fresh peak. Moreover, the positive developments on US soil and perhaps the promise of a more favorable regulatory environment have pushed whales to return with massive price purchases.
Data from Santiment, shared by Ali Martinez, shows that such large market participants had accumulated more than 22,000 BTC (valued at over $2.2 billion) within a span of just 72 hours. Such significant purchases dry up the available supply and reduce the immediate selling pressure, which could potentially lead to fresh price rallies.
Whales have bought over 22,000 #Bitcoin $BTC in the last 72 hours, worth more than $2.24 billion! pic.twitter.com/bl87JcROKU
— Ali (@ali_charts) January 21, 2025
Network Activity
The second factor listed by the popular analyst is the overall network state. The aforementioned whale activity, alongside the growing number of daily active addresses, has resulted in a more robust network shape, which could also serve as a catalyst for “potential price appreciation,” asserted Martinez.
#Bitcoin network activity remains strong, with daily active addresses and whale transactions increasing simultaneously. This trend signals a positive outlook for potential price appreciation. pic.twitter.com/EMf8uyv3SB
— Ali (@ali_charts) January 21, 2025
The dark horse here is the upcoming actions (or lack of them) by Trump. We saw that his failure to mention crypto during his speech resulted in immediate price declines. Consequently, it’s only safe to assume that if he doesn’t follow through on at least a portion of his numerous pro-crypto promises, BTC’s price run could be halted prematurely.
This article first appeared at CryptoPotato
