Bitcoin Price Drops as Amazon Stock Plummets 11% in a Day

Bitcoin (BTC) saw a decline as the Wall Street market opened on April 29, with the United States markets experiencing volatility, particularly an 11% decrease in Amazon stock.

Changes at the Federal Reserve

Data from Cointelegraph Markets Pro and TradingView confirmed that BTC/USD fell to $38,622 on Bitstamp on Friday.
Despite a pause in the strengthening of the U.S. dollar, Bitcoin showed little resilience as it continued to stay below $40,000.
Macro factors were not in favor of the leading cryptocurrency, coupled with a reduction in the Federal Reserve’s balance sheet.

For Amazon, the impact was immediate, with missed earnings targets leading to the largest intraday loss for AMZN in eight years.
At the time of writing, the S&P 500 was down by 1%, while the Nasdaq 100 saw a 0.9% decrease.

Regarding Bitcoin, well-known trader and analyst Rekt Capital suggested that the relative strength index (RSI) might need to establish a higher low and bounce back to provide the market with the momentum for a short-term breakout.

Large Investors Show Interest in Bear Market Conditions

In a recent analysis of whale behavior, data from on-chain analysis platform Whalemap indicated that the purchasing activity resembles the conditions of the bear market bottom observed in late 2018.

According to the data, large holders with balances ranging from 1,000 to 10,000 BTC are actively accumulating Bitcoin, similar to the behavior during the $3,100 BTC/USD level in December of that year. The current volumes even surpass those from the March 2020 crash at $3,600.
Analyst and indicator creator Charles Edwards pointed out, “Whales are accumulating as much Bitcoin today as they were during the $3K lows,” emphasizing the increased participation of holders with significant BTC holdings in the current market.

Whalemap also highlighted that the current spot price levels are historically important for both buyers and sellers.

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