Large investors, commonly called crypto whales, have significantly increased their holdings of Bitcoin (BTC) this month, accumulating approximately $3 billion worth of the leading cryptocurrency, according to data tracked by on-chain analytics firm IntoTheBlock.
This substantial increase in whale activity comes as Bitcoin exchange-traded funds (ETFs) experienced net inflows of $820 million in the same period.
Bitcoin whales boost holdings by 76,000 BTC
The data reveals that the amount of Bitcoin held in wallets owning over 1,000 BTC has surged by approximately 76,000 BTC, bringing the total to nearly 7.8 million BTC. This substantial uptick in whale accumulation underscores the growing interest of large entities and investors in Bitcoin, particularly in the wake of several developments within the cryptocurrency market.
January 2024 witnessed significant fluctuations in the price of Bitcoin. The month began positively, with Bitcoin reaching highs above $48,900 on January 11th, coinciding with the debut of U.S.-based spot ETFs. However, prices subsequently came under pressure, dropping to lows near $38,500 in the following weeks. This downturn was partly attributed to profit-taking by investors in the Grayscale Bitcoin Trust (GBTC), which led to a temporary decline in Bitcoin’s value.
During this price correction, some opportunistic whales took advantage of the lower valuations and increased their holdings through the crypto exchange Bitfinex. Despite short-term market fluctuations, this strategic move demonstrates confidence in Bitcoin’s long-term prospects.
Whales and their role in the crypto market
Whales in the cryptocurrency market refer to entities, individuals, or funds that hold substantial amounts of Bitcoin, typically exceeding 1,000 BTC. Their actions often notably impact the market, as they can influence price movements through large-scale transactions or accumulation strategies.
The latest data indicating significant whale accumulation suggests that these large investors view Bitcoin as a valuable long-term asset and are positioning themselves accordingly. The trend reflects a broader sentiment within the cryptocurrency community that Bitcoin is a store of value and an essential part of a diversified investment portfolio.
ETFs expected to drive further growth
The launch of Bitcoin ETFs in the United States has been a significant development in the cryptocurrency space. Several observers and investment banks, including Standard Chartered, anticipate these recently launched ETFs will attract billions of investments. This influx of institutional and retail capital is expected to positively impact Bitcoin’s market price.
As the ETF market for Bitcoin matures and expands, experts believe that it could play a pivotal role in pushing Bitcoin’s price to new highs. Some projections even suggest that Bitcoin could reach a market price of $100,000 or more by the end of 2024, driven by the increased accessibility and mainstream adoption facilitated by ETFs.
Source: https://www.cryptopolitan.com/bitcoin-whales-accumulate-3-billion-worth/