Bitcoin In Accumulation: Crypto Expert Maps Out Bearish and Bullish Scenarios

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The public’s confidence in regulators and the financial system has been negatively affected by the banking crisis that has hit the USA as a result of the collapse of SVB and Signature Bank. This has led to investments in alternative assets and the leading cryptocurrencies like BTC and ETH has seen a spike in prices.

In the aftermath of the current crisis shaking the global banking sector, Bitcoin dominance surpassed 47% in March. With a 15% increase from the previous week, Bitcoin surged past $28,000, its highest level in nine months. 

Some say that Bitcoin appears to be in its accumulation period, while others strongly disagree and fear that Bitcoin may soon tumble. The analysts are perplexed because the price could change at any time. 

Here is an objective analysis of the bullish and bearish viewpoints. 

Bullish outlook for BTC

Galaxy Digital is a technology-driven investment firm that provides financial solutions spanning the digital assets ecosystem. They have outlined a bullish outlook and have said that a major bullish catalyst is on the horizon for Bitcoin (BTC) as accumulation soars.

As per Galaxy Digital, the bullish catalyst is Bitcoin’s fourth halving event slated to occur in April 2024. Halving events take place every four years and reduce the amount of new BTC entering the market. The tightening of supply has historically coincided with major moves to the upside in Bitcoin’s price.

Bitcoin’s next halving, scheduled for April 2024, will reduce the network’s inflation rate to less than 1%, with approximately 450 new bitcoin mined each day. The three previous Bitcoin price halves (2012, 2016, and 2020) have historically been credited with launching succeeding bull runs. 

Galaxy Digital also identifies the rising Bitcoin accumulation as another bullish development. On-chain data indicates that Bitcoin is continuing to accumulate. The overall number of addresses with a balance greater than zero is skyrocketing.

BTC is stored in more than 45 million addresses. Numerous addresses have only ever received Bitcoin; they have never spent any of it. In the past month, there have been a lot more ‘accumulation addresses,’ as it were.

Bearish outlook for BTC

The likelihood that a significant amount of Bitcoin from the defunct cryptocurrency exchange Mt. Gox could flood the market as it is handed to creditors is the potential bearish market trigger. According to documents from September 2019, the Mt. Gox bankruptcy trustee controls 141,686 BTC in addition to cash and BCH as a result of the exchange attack in 2014. 

The current price of BTC is $28,066 USD with a market cap of $542,440,858,542 USD. This was a balanced view of the bullish and bearish outlook of the market. Such events are likely to regularly impact the price of BTC in the near future.