Bitcoin (BTC) Price Prediction: Whales Accumulate Bitcoin ETFs as Mining Difficulty Reduces

Bitcoin [BTC] has been gaining significant traction from governments, major financial institutions, and large traders known as whales.

Bitcoin (BTC) has seen a remarkable surge in institutional adoption, with major financial institutions, governments, and large traders (whales) driving up the demand for the flagship cryptocurrency.

This growing acceptance is further fueled by China’s potential move to lift its ban on cryptocurrencies. Moreover, according to Quinten/X (formerly Twitter), 60% of the largest US hedge funds have acquired exposure to Bitcoin.

Prominent firms like Citadel Investment Group, Millennium Management, Mariner Investment Group, and Renaissance Technologies have all purchased Bitcoin ETFs in Q2 2024.

This institutional support has played a crucial role in sustaining Bitcoin’s price at $60,000 after the downturn on 5 August. However, some short-term pullbacks can be expected at this level.

Bitcoin price action analysis

On the 4-hour chart, Bitcoin (BTC/USDT) has broken out of a symmetrical wedge and is currently trading at $60,000.

The price rise follows a downturn on 5 August, with institutional involvement helping to support this level.

While some short-term pullbacks are expected at $60K, Bitcoin is likely to continue moving toward its all-time high.

Bitcoin ETFs surge as mining difficulty reduces

Institutional ownership of Bitcoin ETFs surged by 27% in Q2 2024. K33 Research reported that 262 new firms entered the U.S. spot Bitcoin ETF market, bringing the total to 1,199 by 30 June.

This increase is a testament to the growing institutional confidence in digital currencies. As a result, Bitcoin is expected to reach a new all-time high by late 2024 or early 2025.

Recently, Bitcoin mining difficulty decreased in its latest bi-weekly adjustment. This change affects how quickly new blocks are created and regulates Bitcoin’s supply.

The reduction in difficulty suggests a drop in overall computing power, allowing miners to keep the block creation rate steady even with less processing power.

Market sentiment at same level when BTC was below $30K

The market sentiment was reading fear at press time, per the Fear and Greed Index.

The Fear & Greed index is at the same level as when Bitcoin was below $30,000, which led to a price rally up to and beyond the $45K.

In the event that other metrics remain progressive, the current price of BTC is a great zone to load up your positions.

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