Bitcoin Whale Holdings At All-Time High, Is BTC Correction Behind Us?

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed countless bull and bear cycles in various asset classes. The recent surge in Bitcoin whale wallet holdings and institutional inflows into Bitcoin ETFs is certainly an interesting development that catches my attention.

As an analyst, I’ve observed an intriguing development in the Bitcoin market. After finding support at the $65,500 level, the price has surged back above $68,000 today. This surge coincides with a new all-time high in Bitcoin whale holdings. Over the past fortnight, we’ve seen an increase of 297 wallets holding over 100 BTC each. This rapid growth within such a short span suggests increased confidence in the asset class and potentially indicates that the recent correction may have run its course.

Bitcoin Whale Wallets on the Rise

As a dedicated Bitcoin investor, I’ve noticed an exciting development: The holdings of Bitcoin whales have hit a record high, with this group now controlling over 670,000 BTC. This significant increase could spark a new surge of optimism within the market, especially among fellow Bitcoin enthusiasts like myself.

According to the cryptocurrency analytics platform CryptoQuant, when large Bitcoin (BTC) holders, known as whales, start accumulating more BTC, the BTC price often experiences a slight drop or moves horizontally. This pattern, CryptoQuant explained, can be seen as a period of relative tranquility before significant market fluctuations in the mid to long term are expected to occur. Additionally, CryptoQuant pointed out:

The significant increase in Bitcoin’s growth occurs following a gradual decrease in the amount held by large investors (referred to as ‘whales’), until their ownership reaches a point where it results in a negative percentage change.

According to Santiment’s confirmation, there has been an increase of 297 new Bitcoin wallets containing over 100 Bitcoins in the past two weeks. Additionally, the number of wallets holding less than 100 Bitcoins decreased by approximately 20,629. With large Bitcoin holders consolidating their assets following recent selling from retail traders, this trend often signals a potentially positive market direction.

Conversely, ETF investments have been robust, with BlackRock’s Bitcoin ETF taking the front position. Over nine consecutive trading days, BlackRock’s IBIT has amassed approximately 30,000 Bitcoins. This means they now own more than 2% of all circulating Bitcoins, totalling 399,355 coins in their possession.

BlackRock’s iShares Bitcoin Trust (IBIT) now holds over 2% of the $BTC circulating supply.

Significantly, it’s worth mentioning that BlackRock has acquired Bitcoin over the course of nine successive trading days, accumulating a total of 29,714 Bitcoins, which amounts to approximately $1.99 billion in value.

This brought this ETF’s current holdings to 399,355 $BTC ($27.16B), or over 2%…

— Spot On Chain (@spotonchain) October 25, 2024

Is the BTC Correction Behind Us?

After Bitcoin’s price failed to hold above $69,000 yet again, individual investors have become more cautious about its next direction. Despite Bitcoin recovering some of its losses, it must surpass the $69,000 mark in order to maintain its upward momentum.

As a researcher studying the trends in Bitcoin, I must share a word of caution for fellow investors based on our observations at CryptoQuant. We’ve noticed an uptick in large Bitcoin wallets (referred to as whales), which is generally a positive sign. However, if Bitcoin fails to establish a new all-time high by approximately the U.S. presidential elections, around November 28 ±21 days from now, it might suggest potential problems with the current bull market cycle.

According to crypto analyst Justin Bennett, he outlined three key points based on the recent market dynamics. Essentially, he suggested that during a strong bullish phase for Bitcoin, significant corrections or pullbacks are unusual – but this isn’t the case at present.

Everyone is talking about this $BTC “breakout,” but there are three problems here.

1⃣ This trend line is cutting off candle bodies.

2⃣ Trend lines are subjective and open to confirmation bias (hence the first problem).

3⃣ When #Bitcoin is seriously bullish, it rarely offers…

— Justin Bennett (@JustinBennettFX) October 24, 2024

Thus, investors should be watchful of future developments while building new positions for Bitcoin.

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2024-10-25 08:04