Big buyers have returned to the Bitcoin [BTC] market. However, if large investors keep buying and available supply falls, is a supply shock inevitable?
Strategy adds to its Bitcoin pile
The world’s largest Bitcoin treasury has added 1,587 BTC for about $100 million in the last week. The average buying price for this round was $63,024 per BTC.
Thanks to this transaction, Strategy’s total Bitcoin holdings are now at 846,842 BTC. The company has spent around $64.07 billion on Bitcoin so far, at an average purchase price of $75,656 per BTC.
It has also raised its USD reserves by another $100 million, taking it to $1.1 billion.
And, it’s not just them. Also in the news is Vivek Ramaswamy’s Strive after the company bought 73 Bitcoin worth $4.7 million. It’s total holdings are at 19,105 BTC now.
Whale selling falls, is BTC recovery next?
Between 1 and 4 June, older Bitcoin moved to exchanges and selling pressure pushed BTC down to $63.8K. However, the tone flipped near the $61.4K-level.
With panic selling on the rise, large wallets started absorbing the supply and exchange netflows turned negative. By 14 June, whale supply (which had been falling for nearly two weeks) started rising again.
Big hands are perhaps treating the $60K-$61.5K level as a critical buy zone.
In recent days, U.S-Iran developments and the SpaceX IPO have also helped shake things up.
Can the Bank of Japan test the supply shock theory?
While the outlook has improved lately, the macro side still needs attention. The Bank of Japan’s rate decision tomorrow could become the next big chaos trigger!
A BOJ hike may pressure the yen carry trade, a strategy that has supported risk assets for years. When this trade unwinds, investors often sell stocks, crypto, and other high-risk assets. Bitcoin could face sell-pressure if global markets turn risk-off, especially with the Fed decision also coming right after on 17 June.
As it stands, things look mixed. There’s buying, but external factors can still delay the breakout. If Bitcoin holds firm through this pressure, the supply shock case will become much stronger.
Final Summary
- Loads of BTC buying events have revived the supply shock narrative.
- We now face a key macro test with the BoJ and Fed decisions expected soon.