At press time, Bitcoin is priced at $66,852.97. Over the past 30 days, retail investors’ Bitcoin holdings have increased by 1000 BTC, while large investors, especially those holding between one and 10,000 BTC, have been growing their portfolios much faster.
This showcases a significant reduction in the user activity of retail investors and an increase in Bitcoin accumulation in larger investors, who have added a substantial 17,3000 BTC to their investment portfolios. This further showcases a shift in the accumulation pattern of Bitcoins, where wealthier investors accumulate more than the common person.
There is a growing disparity, which can be seen among retail investors and Whales, which further reinstates that there is a substantial reduction in Bitcoin’s decentralization. While the cryptocurrency was created to promote financial autonomy, it now sees a similar fate as Fiat currencies, which the central banks control.
As of 24th October, there are 1678 whale addresses, further highlighting the growing power of Bitcoin by rich investors. As large investors continue to buy more Bitcoin, potential concerns arise about how far the crypto market can continue to be decentralized as smaller investors are slowly being eliminated.
Since the Federal Reserve’s rate cut in September, Bitcoin has regained its upward momentum and resembles its pre-having movement. Bitcoin’s price action is especially driven by the interest rate cuts and initiatives by central banks worldwide.
November will be an important month for Bitcoin Maximalists worldwide. Prominent polls have indicated that the Federal Reserve will implement an economic stimulus of a 0.25% interest rate reduction, reducing the rate to 4.5% from 4.75%.
Having a lower interest rate can make investors choose cryptocurrency as a bond, and saving accounts would provide less interest. This could bode well for Bitcoin as the market can see increased liquidity, further increasing its value.
In addition, central banks easing policies globally could promote Bitcoin’s place as a hedge against inflation, and Bitcoin’s price might reach $75,000 if the upward trend can hold itself.
