In an assertive display of market confidence, significant Bitcoin (BTC) holders, who are often astute in timing market maneuvers, augmented their coin reserves at an unprecedented rate in July, leveraging the fluctuating two-way price movements.

Large holders, defined as addresses possessing at least 0.1% of BTC’s circulating supply, amassed over 84,000 BTC, equivalent to $5.4 billion at the prevailing market price. This accumulation, tracked by blockchain analytics firm IntoTheBlock and TradingView, marks the largest single-month accumulation in BTC terms since October 2014.

This strategic acquisition was driven by opportunistic purchasing during the early July price dip below $55,000, followed by intermittent pauses during the subsequent rebound to $69,000. Bitcoin concluded July with a modest 3% gain, according to CoinDesk data.

The calculated accumulation suggests a strong conviction that the protracted consolidation phase between $50,000 and $70,000 will culminate in a bullish breakout, extending the initial rally from $16,000.

Analysts remain optimistic about Bitcoin’s price trajectory.

“A rate cut in September could instill a bullish sentiment and generally increase market liquidity, which would be favorable for Bitcoin and other cryptocurrencies as investors seek higher returns beyond traditional assets. This scenario could exert upward pressure on Bitcoin’s price and enhance ETF inflows as investors aim to capitalize on a more advantageous environment for risk assets,” Jag Kooner, Head of Derivatives at Bitfinex, remarked in an email.

On Wednesday, Federal Reserve Chair Jerome Powell indicated that interest rates might be reduced as early as September, emphasizing that economic data must support this potential liquidity easing. The central bank maintained its benchmark interest rate steady in the 5.25%-5.50% range, as anticipated.

“The Fed has been aiming for a ‘soft landing,’ and if the data aligns with their forecasts, they are likely to seize the opportunity to cut rates. We anticipate officials will start shifting monetary policy from ‘restrictive’ to ‘slightly less restrictive’ territory beginning in September, with additional cuts in November and December,” ING stated in a daily note to clients.

The bullish sentiment is further bolstered by renewed capital inflows through stablecoins, digital assets whose values are pegged to external references like the U.S. dollar.

According to CCData, the total market capitalization of stablecoins increased by 2.11% to $164 billion in July, the highest since April 2022. “This marks the highest monthly rise in stablecoin market capitalization since April, indicating new capital inflows into the markets, as reflected by the positive price action of digital assets in July,” CCData noted in a report shared with CoinDesk.

Kooner highlighted that the diminishing impact of negative news is reassuring to the bulls.

“There is considerable market confidence at present, especially as even potentially adverse news, such as the Mt. Gox distribution, German government sales, and other significant on-chain movements, have not significantly impacted Bitcoin’s price negatively,” Kooner observed.