Global stock markets remain volatile, exerting downward pressure on Bitcoin (BTC) prices. However, data reveals that Bitcoin whales are accelerating their accumulation trend.
Market Turmoil Amid False Rumors
On April 7, global financial markets continued their decline, with U.S. stocks dropping over 3% at opening, erasing more than $2 trillion in market capitalization. The S&P 500 fell 2.79%, officially entering bear territory with a 20% drop from recent highs.
A brief rebound occurred when rumors spread about U.S. President Donald Trump considering a 90-day tariff pause, briefly lifting the S&P 500 by 6%. Bitcoin surged past $80,000 but retreated after 30 minutes when the White House debunked the rumor.
By the Asian trading session, trade-dependent economies faced severe losses:
- Hong Kong’s stock index plummeted 13%, its worst performance since the Asian financial crisis.
- Major indices in Shanghai, Taipei, and Tokyo fell 7%–10%.
- Nikkei 225 futures halted trading after triggering a circuit breaker.
Tensions between the U.S. and China escalated, with President Trump threatening 50% additional tariffs on Chinese exports if China did not withdraw its 34% preliminary tariffs by April 8.
Bitcoin Hits Yearly Low as Whales Accumulate
After briefly decoupling from U.S. stocks on April 3–4, Bitcoin dropped 6.5% over the weekend, hitting a yearly low of $74,457 on April 7—its lowest since November 7, 2024.
Key insights:
- Julio Moreno (CryptoQuant): "Don’t try to catch a falling knife. Bitcoin’s market conditions haven’t improved. Only one bullish signal exists on the Bull-Bear Score Index."
- Whale accumulation (addresses holding 10,000+ BTC) reached a score of 1.0 on April 1, reflecting a 15-day buying spree—the largest since August 2024.
- Since March 11, whales added 129,000 BTC, with a steady accumulation score of 0.65.
- Smaller holders (1–100 BTC) shifted to distribution, with scores dropping to 0.1–0.2, likely lasting through 2025.
Bitcoin found support near $74,000, backed by 50,000 BTC investors dormant since March 10.
Supply dynamics:
- New Bitcoin supply growth now outpaces active coins’ annual change.
- Historically, this metric’s rise aligns with price recoveries.
👉 Discover how Bitcoin whales influence market trends
FAQ
Q: Why did Bitcoin drop alongside stocks?
A: False tariff-pause rumors briefly lifted markets, but rapid corrections occurred after debunking, reflecting heightened correlation during volatility.
Q: Are Bitcoin whales bullish long-term?
A: Yes. Their sustained accumulation (129,000 BTC since March 11) suggests confidence in Bitcoin’s recovery despite short-term dips.
Q: How does new Bitcoin supply impact prices?
A: Accelerating supply growth often precedes price rebounds, signaling increased demand or accumulation phases.
Note: This content is for informational purposes only and does not constitute investment advice. Conduct independent research before making financial decisions.
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