Bitcoin whales have been on an aggressive buying spree, amassing a staggering $90 billion worth of BTC since May 2024, according to CryptoQuant analyst Axel Adler Jr. This accumulation marks a sharp rise in whale activity, signaling confidence among high-net-worth investors despite recent market volatility.
Whales Add 1.5 Million BTC In Six Months
Between May and October 2024, whales – investors holding more than 1,000 BTC – have added approximately 1.5 million BTC to their holdings. This influx brings the total number of Bitcoin held by whales from 335,000 BTC in May to 1.9 million BTC today.
During this period, Bitcoin traded between $60,000 and $65,000, with whales buying from investors selling at losses, indicating a transfer of tokens from “weaker hands” to larger holders. The total inflow of capital during this accumulation period reached around $90 billion, based on Bitcoin’s average price of $60,000.
Even with Bitcoin’s recent price dip, whale activity shows no signs of slowing down. Yesterday, Bitcoin fell below $59,000, triggering significant liquidations. However, IntoTheBlock’s Large Holders Netflow metric revealed that whales continued their buying spree, with 629 BTC flowing into whale wallets yesterday alone. Two days earlier, large holders accumulated 2,480 BTC, reinforcing their bullish stance.
Exchange Reserves Decline Amid Market Indecision
Further data from CryptoQuant highlights that Bitcoin’s exchange reserves have dropped from 2.576 million BTC at the start of October to 2.571 million BTC. This suggests that despite short-term corrections, whales are moving their Bitcoin off exchanges, a trend often associated with long-term holding.
At press time, Bitcoin trades at $61,690, reflecting a 1.68% decline over the past week. Technical indicators like the Directional Movement Index (DMI) show that bearish sentiment still holds, with the negative directional indicator (-DI) at 23.3, slightly above the positive directional indicator (+DI) at 18.3. However, the Average Directional Index (ADX), which measures trend strength, has dropped to 21.6, suggesting weakening momentum.
Market Awaits Breakout Amid Neutral Sentiment
Bitcoin’s current Williams %R level of -40.74 indicates neutral momentum, pointing to indecisiveness in the market. Until strong buying or selling pressure emerges, Bitcoin may continue trading within its current range.
Veteran analyst Peter Brandt weighed in on Bitcoin’s potential future, projecting that the cryptocurrency could reach $150,000 during this cycle. However, Brandt also warned that if Bitcoin remains range-bound for too long, it risks a 75% price collapse, underscoring the importance of a decisive breakout.
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Bitcoin Whales Signal Long-Term Optimism
The steady accumulation by Bitcoin whales suggests that large investors remain optimistic about Bitcoin’s long-term prospects, even amid short-term price fluctuations. With exchange reserves falling and whales absorbing supply, the stage is set for potential upward momentum. However, without a clear breakout, Bitcoin faces the risk of extended consolidation or a significant downturn, as cautioned by Brandt.
As the market waits for its next major move, the actions of these whales will likely play a critical role in shaping Bitcoin’s price trajectory in the coming months.
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.
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