Rise in Bitcoin Whale Activity: What Are The Implications?

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• This resurgence indicates renewed market confidence driven by expectations of a potential approval for a spot BTC ETF, along with Bitcoin price movements and the upcoming halving event.
• According to Glassnode’s analysis, the trading volumes of smaller investors have shown a decrease. For instance, the ranges of $0-1,000, $1,000-10,000, and $10,000-100,000 represent 2%, 4%, and 12%, respectively.
• Increased institutional adoption demonstrated by companies like Ark Invest, BlackRock, and MicroStrategy has contributed to the rise in whale activities.

Following the recent rally in the Bitcoin price, Glassnode examined the latest Bitcoin on-chain data: the volume of small investors is decreasing!

Increase in Whale Volume in Bitcoin

Bitcoin has recently gained attention with its remarkable market strength. On-chain analyses reveal an increase in BTC whale activity in transactions exceeding $10 million. This increase reached a peak observed only once in 2023, constituting 30% of the recent transaction volume.

This resurgence indicates renewed market confidence driven by expectations of a potential approval for a spot BTC ETF, along with Bitcoin price movements and the upcoming halving event. According to Glassnode data, the share of whales in transaction volume, especially in the range of $100,000 to $1 million, constitutes 24% of the total volume.

A similar trend is observed in the range of $1 million to $10 million, with volumes reaching up to 28%. These findings suggest that significant whale activities are influencing recent BTC transactions. However, according to Glassnode’s analysis, the trading volumes of smaller investors have shown a decrease. For instance, the ranges of $0-1,000, $1,000-10,000, and $10,000-100,000 represent 2%, 4%, and 12%, respectively.

According to the analysis, the current BTC transaction volume figures resemble the significant whale activity observed in the 2021 bull market, emphasizing the importance of these whales in the Bitcoin network. In the last week of October 2023, a significant increase in transactions over $100,000 was observed, with a recorded 23,400 transactions.

Increased institutional adoption demonstrated by companies like Ark Invest, BlackRock, and MicroStrategy has contributed to the rise in whale activities. Cathie Wood of Ark Invest highlighted Bitcoin’s limited supply, stating, “if institutions get involved, the price could rise parabolically.”

Bitcoin Price Movement

This significant increase coincides with a period when Bitcoin is preparing for the next bull run, and prices have recently risen to $38,000. BTC is currently trading over 120% above its year-to-date price. As of the writing of this report, Bitcoin was trading at $36,410, representing a slight decline from its 18-month high of $38,000 reached 48 hours earlier.

The recent disappointment surrounding ETFs has been the main driving force behind the price movements. The upcoming Bitcoin halving event contributes to BTC’s upward trend, attracting more whale investments. Analysts suggest that these recent price movements signal higher price targets for Bitcoin, such as $45,000, $68,000, and $74,000.