Following the United States Federal Reserve's decision to raise interest rates to a 22-year high, Bitcoin experienced a minimal 0.1% 24-hour increase and was trading at $29,304. Ethereum, the second largest cryptocurrency, remained stable and was priced at $1,859. The Federal Reserve raised its benchmark interest rate by a quarter of a percentage point and emphasized the importance of continuing the fight against inflation until it drops to 2%.

Despite a promising 76% rally year to date, Bitcoin has experienced some stagnancy and a modest decline this month, causing the digital currency market to lose momentum compared to stocks. Bloomberg's gauge of the top 100 digital assets by market cap shows that crypto has risen approximately 46% year to date, while the NASDAQ 100 has experienced a near-equal 42% rise.

According to on-chain data, the Bitcoin exchange whale ratio has remained low, indicating that large investors have not been active in the market. The exchange whale ratio measures the ratio between the top 10 transactions to exchanges and the total exchange deposits in the market, with high values indicating that whales are making up a large percentage of the total inflows.

Blockchain data resource IntoTheBlock has shared key metrics to watch as Bitcoin falls below the $30,000 psychological support level. Despite the drop, almost 69% of Bitcoin holders are currently in a profitable position, in contrast to many other struggling altcoins. However, 49.66% of active addresses from the previous day are currently experiencing losses, raising concerns about potential capitulation. On a positive note, the report showcases a promising trend in user growth, but also draws attention to concerning factors such as Bitcoin's potential overvaluation and historically low volatility.

Stacks is a Bitcoin layer for smart contracts. Decentralized applications are executed on Stacks and settled on Bitcoin, leveraging the security and capital of Bitcoin while offering arbitrary programmability that is not possible on Bitcoin’s scriptable settlement layer.

The Market Price of Bitcoin and the “Number Go Up” Model

Bitcoin whales, including short-term holders, have increased their trading activity in recent weeks, with whale-to-exchange net flows sustaining an elevated inflow bias of 4.0k to 6.5k BTC/day. Mining pools, such as Poolin, are also driving Bitcoin activities in exchanges by selling large volumes of Bitcoin. Short-term holders dominate the market, with a trend of keeping assets for a maximum of 155 days, and are actively trading local market conditions. BTC is currently trading at $29,238, with outflows recorded in Bitcoin-related products after five weeks of consecutive inflows.

Binance's "Half-Year Report 2023 July 2023" provides insights into the current state of the crypto market, showing positive growth in market capitalization on a quarterly, half-yearly, and annual basis. Despite facing challenges in the first half of the year, the crypto industry has demonstrated resilience, with a surge in institutional interest and adoption.

Big investors who have been holding onto Bitcoin for years have started moving their holdings, including wallets that have been dormant for over a decade. In one case, a Bitcoin whale transferred over $37 million worth of BTC to a new address after 11 years of inactivity. These investors, who hoard at least 1,000 BTC, have proven to be more successful than short-term traders due to the cryptocurrency's extreme volatility. It is unclear whether these whales are individuals or companies, but some may be commercial entities buying Bitcoin from individuals.

Stablecoins, such as Tether, USD Coin, and TrueUSD, have become an important source of liquidity in the Bitcoin and crypto market, providing a safe haven for investors to park their funds before making strategic moves. However, industry experts and data analysts have observed that the stablecoin fuel is running low, raising questions about the market's upside potential.