2025-02-05 04:21:23 by Voice of Crypto

Key InsightsBitcoin might enter a recession phase by the end of Q1 or in Q2 2025.A recession is characterized by a net decline in two successive quarters.Ancient Bitcoin whales that mined BTC in 2010 are now transferring them, possibly to sell them.Meanwhile, MicroStrategy has also paused its purchasing streak, with its last purchase on 06 January 2025.MicroStrategy Stops Buying Bitcoin Lately, Bitcoin whales have become highly active in the crypto markets. At a point where corporate Bitcoin purchases have taken a break, these whales now see it as an opportunity to dump BTC. Last week, whales also sold off other cryptocurrencies like ADA, XRP, and DOGE.Liquidity concerns, market uncertainty, executive action from Donald Trump, and supply chain disruption are some possible reasons for MSTR's stopping its Bitcoin purchase.The uncertain global geopolitical landscape seems to be the worst reason impacting MSTR's purchases. The reciprocal imposition of tariffs between the US and China opens possibilities for similar tariffs from Canada and Mexico. These could disrupt the US goods and services supply chain, impacting the US economy and forcing the Fed to raise interest rates.Further, it is still unclear how the Bitcoin reserve will take shape, its buying rate, and what other cryptocurrencies it may include. The Working Group's first draft of the report is expected around the first week of July 2025.Ancient Whale Redeems BTC After 15 YearsAn ancient whale was spotted moving 50 Bitcoins, redeeming them for $5 million. This whale was one of the first Bitcoin miners in 2010 and had acquired his Bitcoins purely via mining. Before the first Bitcoin Halving in 2012, each Bitcoin block gave 50 BTC as a reward. This reward, in today's terms, amounts to $5 million, but back then, it was just $0.1 or 10 cents.Also, during the initial days of the Bitcoin network, mining was too easy. People mined on simple gadgets like laptops, Macs, and old desktops. Mining a couple of hundred Bitcoins was just a matter of days if not hours. This time was the same when Lazlo Hayenicz bought two large pizzas with 10,000 BTC.Combining the above two pieces of information, we can make an intelligent guess that the whale could have thousands of Bitcoins and might redeem each block reward one at a time. A single whale could easily crash the markets if this redemption speed accelerates.Top Chart Analyst Predicts a Bearish Phase in Short-TermAnalyst Ali Martinez had previously warned of a short recession in the markets. His view is that Bitcoin could drop to $91.7k at minimum and $74k at maximum. The crash of 02 February 2025 showed that the first event had concluded.Given these factors—rising selling pressure, lack of fresh capital, and declining network activity—it’s crucial for #Bitcoin to hold above $91,700.If this level fails, $BTC could crash to $74,000.https://t.co/7sHQmGeeYM— Ali (@ali_charts) January 30, 2025 Bitcoin has always moved in cycles of four years, with the last bear cycle being in 2022 (the crypto winter). Hence, a bearish phase in 2025 seems like a possibility, but the chances of another crypto winter are fractional. Ali presents this view with a cup and handle chart, which indicates a top of $276k by the end of 2025.What negates another crypto winter in 2025 is the corporate purchases and large funds buying Bitcoin. MicroStrategy alone announced a $42 billion purchase in October 2024.Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.