Bitcoin Reserve Boost and Price Acceleration Anticipated

Recent developments in the cryptocurrency world have highlighted significant moves by major players, setting the stage for potential price acceleration in Bitcoin.

Tether Adds $735 Million Worth of BTC to Reserves

Tether has added 8,888 BTC worth $735 million from the Bitfinex hot wallet. The address currently holds 92,000 BTC, worth $7.65 billion, and is the sixth-ranked BTC wallet address. This move is part of Tether’s strategy to regularly use 15% of the company’s profits to purchase Bitcoin to enhance its reserves.

Bitcoin Price Gearing Up for Next Acceleration Phase - Fidelity Research

A recent Fidelity Digital Assets report explored whether Bitcoin’s price had already reached its cyclical peak or if it is on the cusp of another acceleration phase. Fidelity analyst Zack Wainwright noted that Bitcoin’s acceleration phases are characterized by high volatility and high profit, similar to when BTC surpassed $20,000 in December 2020. Despite an 11.4% year-to-date loss and a nearly 25% decline from its all-time high, Wainwright suggested that the recent post-acceleration phase performance aligns with BTC’s average drawdowns compared to previous market cycles.

Is Bitcoin (BTC) Poised For A Q2 Recovery?

Bitcoin (BTC) attempts to reclaim the $84,000 barrier but risks closing the month in red numbers. Some analysts suggest that BTC’s Q2 performance could mimic its 2017 rally. A week ago, Bitcoin saw a star-of-week pump to retest the $88,000-$89,000 resistance zone, surging to a two-week high of $88,765. However, as the weekend approached, BTC lost its range, falling to $84,000 on Friday and continuing to dip over the next two days. Bitcoin saw an 8.2% weekly drop during the early Monday hours, hitting $81,278 before recovering.

Bitcoin Eyes $83.1K Breakout – Potential Short Squeeze

Bitcoin is nearing a critical threshold with its price close to tightly packed short liquidation levels between $83,100 and $83,500. Open interest dropped by 9% in one week, highlighting trader exit or liquidation pressure. The compression sets the stage for further volatility, with a potential short squeeze waiting to happen.

Crypto Market Struggles to Stabilize, Bitcoin Outperforms Altcoins

The cryptocurrency market struggled to find its footing on Monday, showing signs of a bullish effort. A late-day rebound in the stock market provided some support, pushing the total market cap up by 1.1% over 24 hours, though it remains down 5% over the past week. Technically, this is a bounce within a broader downtrend, as trading remains below the 200-day moving average. Bitcoin is outperforming altcoins, with its dominance now surpassing 61%—the highest level in four years. The price is hovering around $83,000, marking a 3% decline for the month.