As the BTC price catches up to the S&P 500 rally, the pre-halving rally could commence at any moment, with investors targeting $51,000.
Amidst the overall market recovery, Bitcoin (BTC), the largest cryptocurrency in the world, is exhibiting robust performance, increasing by more than 4% and approaching $45,000.
Massive whale accumulation has been occurring in Bitcoin for the past four weeks before this development.
Bitcoin Whale Supply Augments 14-Month High
According to Santiment, an on-chain data provider, the Bitcoin price has reclaimed the $44.5K mark for the first time since January 12th, when the ‘ETF hangover’ retracement began.
However, the partial resurgence in price is being ascribed to the escalation in holdings within wallets containing 1,000 Bitcoin or more.
According to the data, the combined possessions of these sizable wallet holders, holding more than 1,000 BTC, are at their highest level in over 14 months.
The observed accumulation trend among whales, which refers to significant investors, indicates an increasing level of trust in the enduring value proposition of Bitcoin.
This may have played a role in the recent surge in its price.
Ali Martinez, a highly esteemed crypto analyst, has provided insight into a pivotal development within the Bitcoin market, highlighting a substantial area of support for the top cryptocurrency.
Furthermore, Martinez claims that a collective of over 3 million addresses has acquired approximately one and a half million Bitcoins for funds ranging from $41,800 to $43,080.
Prominent crypto analyst Michael van de Poppe proposed that Bitcoin’s correction phase might be nearing its conclusion, signifying the possibility of a pre-halving rally.
Additionally, Van de Poppe predicts that Bitcoin’s price trajectory may soon bring it within the range of $48,000 to $51,000 in the future.
Recently, Bitcoin miners have been selling as a means to generate funds for the acquisition of advanced mining rigs and the expansion of their operations.
Catching Up to Equities
On the condition that the long-term correlation between cryptocurrencies and the S&P 500 remains unchanged, one could argue that Bitcoin and other cryptocurrencies may eventually equal the performance of the S&P 500, potentially before Bitcoin’s halving in April.
However, one cannot discount the likelihood of significant volatility in the future, given that the Fed chair has signaled a postponement of the rate reduction.
Given the current state of equities, which are at all-time highs, cryptocurrency traders may be able to anticipate a close correlation between market values and the performance of publicly traded companies.
Throughout history, the most substantial bull runs in cryptocurrencies have occurred when their correlation with equities is minimal or non-existent.