Bitcoin (BTC) has made a notable recovery, bouncing back above $68,000 after finding support at the critical $65,500 level. This surge in price coincides with a remarkable increase in Bitcoin whale holdings, which have hit a new all-time high, indicating renewed confidence in the cryptocurrency market.
A New Era For Bitcoin Whales
Recent data reveals that over the past two weeks, the number of Bitcoin wallets holding more than 100 BTC has surged by 297. This growth is significant, demonstrating that the wealthiest investors are consolidating their positions. Currently, Bitcoin whales collectively hold more than 670,000 BTC, a development that could catalyze further positive momentum in the market.
According to CryptoQuant, a leading crypto analytics platform, the correlation between rising whale holdings and price movements is noteworthy. Historically, when whale holdings turn positive, Bitcoin often experiences a moderate decline or stabilizes before a potential breakout. CryptoQuant noted, “This represents the calm before the storm about to arrive in the medium to long term.”
Supporting this narrative, Santiment confirmed that the rise in whale wallets has occurred simultaneously with a reduction of 20,629 wallets holding less than 100 BTC. This consolidation among large holders typically follows periods of retail panic selling and is often seen as a bullish signal for the market.
ETF Inflows Bolster Market Sentiment
Adding to the optimism, Bitcoin exchange-traded fund (ETF) inflows have been robust, particularly led by BlackRock’s Bitcoin ETF, IBIT. Over the last nine consecutive trading sessions, BlackRock has accumulated nearly 30,000 BTC, now holding over 399,355 BTC—equivalent to more than 2% of the circulating supply. This institutional interest further reinforces the narrative that significant players are betting on Bitcoin’s potential upside.
Are We Out of the Woods?
Despite these positive developments, caution remains paramount among investors. Following the recent price rejection at $69,000, retail investors are adopting a more cautious stance regarding Bitcoin’s next move. While Bitcoin’s current momentum is promising, it needs to decisively cross the $69,000 threshold to maintain its upward trajectory.
CryptoQuant has warned investors about the potential risks in the current bull cycle. They emphasized that if Bitcoin fails to set a new all-time high around the upcoming U.S. presidential elections, particularly by late November, it could signal trouble for the bullish outlook.
Renowned crypto analyst Justin Bennett has echoed this sentiment, pointing out that Bitcoin typically does not offer resets when in a strong bullish phase. This raises questions about whether the current price action is a precursor to further gains or merely a short-term rally.
Also Read: Italy To Hike Bitcoin Tax To 42% In 2025, Aiming To Raise €68M From Crypto And Digital Services
Keep an Eye on Market Developments
As Bitcoin’s price climbs and whale holdings continue to rise, the landscape is becoming increasingly intriguing for investors. However, the combination of cautious retail sentiment and potential market volatility ahead suggests that staying informed and vigilant is key. Investors looking to build positions in Bitcoin should be attentive to forthcoming developments as the cryptocurrency market navigates this critical juncture.
With major players accumulating Bitcoin and ETF inflows on the rise, the coming weeks could hold substantial implications for Bitcoin’s future, making it a crucial time for both seasoned investors and newcomers to the crypto space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.