Bitcoin Whales Are Accumulating Again, Is Price Rebound Ahead?

by

Following a significant drop in Bitcoin‘s (BTC) value earlier this week, it appears that large Bitcoin holders (often referred to as “whales”) are contributing to a recovery in the overall crypto market. Currently, the market is holding steady, and if the continued buying from these whales continues, it could lead to a quick price surge, potentially causing a breakout.

Bitcoin Whales Taking Advantage of Correction

Based on information from CryptoQuant, significant purchasing activity has returned on the blockchain following what they referred to as the most substantial selloff of 2024. As previously mentioned by Coingape, the price of Bitcoin dropped unexpectedly after the release of robust US jobs and ISM Services Prices PMI figures. However, these economic indicators suggested that the US Federal Reserve would not lower interest rates, which made traders remain wary.

Currently, the Bitcoin price fluctuated between a peak of $97,258.32 and a low of $92,525.84. According to CryptoQuant Analyst Cauê Oliveira’s perspective, some significant investors in the market showed restraint, accumulating Bitcoins at levels slightly below $95,000.

After the biggest dump of 2024, whales are accumulating Bitcoin again

Yet, major entities seized the opportunity presented by the consolidation to establish Time-Weighted Average Price (TWAP) positions. Gradually, they amassed assets at a price point slightly under $95,000 each time.

Full post

— CryptoQuant.com (@cryptoquant_com) January 8, 2025

According to Oliveira’s thorough examination, institutional investors sold approximately 79,000 Bitcoins within a week. This massive sell-off initiated a 15% market adjustment from which we’re yet to fully recover. He emphasized that large-scale traders exploited this situation by establishing “Time-Weighted Average Price” positions over the last 30 days.

Institutional Investors Shielding the Market

According to an analysis by CryptoQuant, large-scale Bitcoin investors (often referred to as “whales”) have purchased approximately 30,000 individual Bitcoin units during the last month. This analyst also indicated that institutional investors are primarily responsible for the recent increase in demand for Bitcoin, contributing significantly to its recovery.

The analyst noted that the demand for Bitcoin in retail markets is currently at a five-year peak. Furthermore, it appears that the overall interest from large Bitcoin holders (institutional investors) continues to be strong.

Major financial institutions often incorporate entities such as MicroStrategy and Riot Platforms into their ranks. Notably, MicroStrategy acquired approximately $22 billion worth of Bitcoin in the year 2024. Post these transactions, the company reported an impressive annual yield of around 74.3% from its Bitcoin holdings.

As a researcher studying Bitcoin, I’ve noticed some promising trends indicating potential future growth. Should these related acquisitions persist, my analysis suggests that Bitcoin could reach new heights within the mid-term.

The Shift to a Third Force

As large institutional investors banded together to create a Bitcoin Whale coalition, driving the cryptocurrency’s value to a record peak of $108,000, it is anticipated that countries will follow suit in the near future.

Following Donald Trump’s inauguration as president, discussions about establishing a strategic Bitcoin reserve have gained momentum. Throughout his presidential campaign, Trump had promised to create such a reserve upon taking office, and the industry is optimistic that he will follow through on this commitment.

Should the U.S. take this action, financial analysts anticipate that other countries may adopt a similar strategy. Over time, such a shift could potentially have significant effects on the value of Bitcoin.

Read More

2025-01-09 03:08