Bitcoin whales They have been accumulating BTC continuously since the beginning of the year amid bullish future expectations For the cryptocurrency industry, the rising Bitcoin whales have shown investor confidence, which has also translated into a rise in Bitcoin’s value over the past six months.
Despite recent corrections, on-chain data suggests that whale addresses have doubled down on accumulation, pushing their holdings to levels not seen since 2022. In particular, the total BTC supply in addresses holding 1,000 BTC or more has reached a two-year high.
What is the reason behind the sudden surge in Bitcoin whale accumulation?
Based on Information According to IntoTheBlock, Bitcoin whale addresses have recently reached a significant annual milestone in their quest to accumulate Bitcoin. When we talk about whales, this data tracks Bitcoin addresses that hold 1,000 or more Bitcoin. This milestone means that addresses that fall into this group have reached their highest level in over two years.
The new milestone in whale accumulation is only part of the whole story. According to IntoTheBlock’s chart data, this accumulation spiked dramatically in January 2024, a period when the crypto markets began a full-blown bull run. After months of waiting, spot Bitcoin ETFs were finally introduced to the US market, and that was the moment when things really started to heat up. These new investment vehicles made it easier than ever for institutional investors to invest in Bitcoin. As a result, new wealthy investors jumped in, amassing massive amounts of Bitcoin.
The accumulation of Bitcoin spot ETFs can be confirmed by Glassnode data. According to the chat below on Glassnode, US spot ETFs have acquired over 900,000 BTC in just seven months. The funds continue to buy BTC Even during corrections.
Another part of the accumulation puzzle can be traced back to Bitcoin miners, who increased their holdings by 4,500 BTC throughout July, worth $300 million. At the time of writing, Bitcoin addresses with more than 1,000 BTC accounts hold 7.9 million BTC. To put that into perspective, that’s about 40% of the circulating supply of 19.7 million BTC.
What does this mean for Bitcoin?
The whale accumulation has been largely positive for the Bitcoin price and has led to a corresponding price spike. When whales make a move, the rest of the market tends to take notice. Their actions can influence smaller investors, which can lead to a domino effect of increased Bitcoin buying. This cumulative feat can also lead to increased Bitcoin buying. Adding to the upward momentumM, as Bitcoin price is now approaching the $70,000 level again.
At the time of writing, Bitcoin is trading at $66,715. struggle to break And keep the price above $67,000.
Featured image by Shutterstock, chart by TradingView
