Will the price of Bitcoin rise? After the dramatic collapse of cryptocurrencies, will cryptocurrencies recover enough to post a massive Trump rally? Can altcoins recover?
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Altcoin holders are under intense pressure for the rest of this week. Some are confident that the cryptocurrency market is experiencing a wave of sustained selling pressure from whales.
Technically, the uptrend set for Q4 2024 still holds. If the world’s most valuable currency finds a solid base above $90,000, the total cryptocurrency market capitalization could recover, surpassing the $3.7 trillion level recorded in late December 2024.
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Looking at altcoins, Ethereum, Solana, XRP and others, including Cardano and Avalanche, are facing headwinds. Buyers must push ETH above $4,000, XRP above $2.5, and SOL above $270 if interest is to renew.
Despite the current situation, buyers have the upper hand, especially when viewed from a top-down perspective.
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When will cryptocurrency prices recover? Whales are selling – will the price of Bitcoin rise?
However, given the wave of lower declines and dumping, will the recovery be immediate? According to Lookonchain, whales are abandoning their crypto assets, opting for cash as the trading environment changes.
Earlier today, a dormant Bitcoin wallet sent all coins to Coinbase Prime. Over the past six years, the address has held 500 bitcoins worth more than $46 million. With prices falling towards $90,000 yesterday, it looked as if the whale chose to cash out when the technical candlestick formation still favored the bulls.
The wallet that had been idle for 6 years deposited all 500 $ Bitcoin ($46.87 million) to #Coinbase Prime 2 hours ago.
This wallet received 500 $ Bitcoin 6 years ago when the price $ Bitcoin It was $7,000. https://t.co/D9IbccUqIA pic.twitter.com/jK1AkMrA2c
– Loconchain (@loconchain) January 10, 2025
On the same day, another whale grabbed over 245,000 SOL worth over $45 million and sent them to Binance. Typically, any transfer to a central exchange is interpreted as bearish.
On Binance, the whale will likely be sold, and exchanged for stablecoins or fiat. The problem is that there is no way to determine whether the whale sold immediately or is still holding SOL, waiting for the right time.
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Investors aren’t just dumping Bitcoin and Solana. Data suggests that whales are also minting famous coins. One whale sold 85 billion PEPE on January 9 for US$1.51 million. The decision to exit at this price means that the whale would have incurred a loss of $1.74 million. Even with this discharge, the whale still carried 180.8 billion PEPE worth over $3.2 million.
Market turmoil also affected institutions.
Asset management company Fidelity sent ETH to Coinbase via Cumberland. As of January 10, Lookonchain data revealed that the company had deposited more than $213 million worth of ETH.
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Furthermore, looking at Soso Value, all nine US Bitcoin ETFs recorded net outflows on January 9. Institutions redeemed more than $582 million in Bitcoin-backed shares, with more than 1,300 Bitcoin sold by iShares alone.
(source)
Spot Ethereum ETFs were not spared either.
More than $159 million worth of ETH was redeemed on January 9.
(source)
A large portion of the outflow was from Grayscale’s Ethereum Mini Trust, which recorded a net outflow of $8.2 million.
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Will the price of Bitcoin rise? What is the next step for Bitcoin and the most important alternative currencies?
Historically, January has been a challenging month for cryptocurrencies and financial markets. Often times, prices tend to rise sharply before correcting.
But in response to the question “Will Bitcoin prices rise?” Analysts are optimistic, and expect cryptocurrency and Bitcoin prices to get off to a strong start through 2025.
Tailwinds will be caused by overall strong market sentiment. Optimists estimate the price of Bitcoin at around $250,000 by 2025, citing increased institutional adoption, a favorable regulatory environment, and favorable macroeconomic conditions.
Prices will rise if the Fed cuts interest rates in the first quarter of 2025 and Donald Trump continues to deliver on his campaign promises.
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