According to Brian Quinlivan, marketing director at blockchain analytics firm Santiment, two factors could spark a recovery in Bitcoin’s price:
Whale and Shark Accumulation
Whales (holding 10-10,000 BTC) and sharks have recently taken profits, contributing to the price decline. However, if they resume accumulation, it could indicate a potential upward trend.
Fear, Uncertainty, and Doubt (FUD)
Widespread FUD among crypto traders and investors can also trigger a recovery. As seen in November 2022 after the FTX collapse, extreme fear can lead to panic selling and a price surge when sentiment shifts.
Correlation with Stock Market
Quinlivan notes the strong correlation between crypto and the S&P 500 index. The Federal Reserve’s policies and inflation have significantly impacted both markets. If the S&P 500 recovers, it could positively influence Bitcoin’s price.
