The founder of Capriole Investments, Charles Edwards, predicted a rise in the price of the first cryptocurrency over the week. He attributed this to a surge in purchases from institutional investors on the Coinbase exchange.
According to Edwards, on August 12, 75% of trading volume on the platform was attributed to whales. He noted that all values above this mark historically led to a price increase within a week.
Capriole analysts calculated that this week's 'excess demand' from large players exceeded the daily issuance of new bitcoins (about 450 BTC) by six times.
Only corporate holders added 810 BTC to reserves on August 12. The day before, the figure was close to 3000 BTC.
Investor activity coincided with the release of U.S. inflation data, which turned out to be lower than expected. According to Edwards, this strengthened market confidence in a rate cut by the Fed next month.
He added that a rate cut increases the attractiveness of risky assets, and bitcoin has historically been the 'fastest horse'.
CME FedWatch Tool data shows that market participants expect a decrease of 0.25% in September.
QCP Capital noted that the market has already priced in a rate cut of about 0.6% in 2025. Further signals about the regulator's plans are expected from the symposium in Jackson Hole from August 21-23.
Recall that on August 12, the price of digital gold fell by 2%. Analyst and founder of MN Trading, Michael van de Poppe, called this movement 'a rather ugly daily candle' and suggested a possible decline in quotes to $116,800.
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