It’s only a month into 2024 and Bitcoin has already experienced a whirlwind of activity. These events range from the SEC’s approval of spot Bitcoin ETFs to the cryptocurrency’s underperforming price with a decline over the past month and sell-off of the Grayscale BTC Trust. Amid all this, on-chain data has revealed an interesting sentiment of strategic accumulation among whales of the largest cryptocurrency.
According to information from crypto analytics firm IntoTheBlock, Bitcoin whales have added more than 76,000 BTC worth approximately $3 billion to their holdings since the beginning of the year.
Bitcoin whales have increased their value $BTC holding ~$3 billion (76,000 BTC) since the beginning of this year. pic.twitter.com/0hi3Q7WXEo
— IntoTheBlock (@intotheblock) January 27, 2024
Bitcoin Whales Increase Holdings by $3 Billion Despite Market Drop
Bitcoin’s price rose shortly after the approval of spot ETFs in the US, hitting a 20-month high of $48,600. However, in a surprising turn of events, the crypto has seen a price drop, reaching a low of $38,880 during the week.
Despite this series of events, on-chain data suggests that the sell-off is mainly coming from small holders and a few large whales, as the majority of whales have taken advantage of the price drop to put more Bitcoin into their wallets.
The total balance among Bitcoin whales increased by 76,000 in January, with the count now approaching 7.8 million BTC. As a result, addresses holding more than 1,000 BTC have now reached a new all-time high.
Despite the negative price movement, Bitcoin has reached a new annual high at addresses holding more than 1,000 BTC! pic.twitter.com/4qQhbXSD9S
— IntoTheBlock (@intotheblock) January 26, 2024
Price increase coming?
BTC’s future price prospects look unclear at the moment, much like crypto currently trading at a small resistance around the $42,000 level. According to According to analyst Michaël van de Poppe, Bitcoin could continue to consolidate between $37,000 and $48,000 in the coming months, giving altcoins time to shine.
BTC is currently trading at $42,522. Chart: TradingView.com
However, the fundamental data surrounding Bitcoin points to longer-term price growth. Renowned economist Peter Schiff recently commented that Bitcoin has the potential to rise to $10 million within the next decade if it becomes a hedge against the devaluation of the US dollar.
The community and investors also like to keep an eye on crypto whales as they can significantly influence price movements. When whales stock up on BTC, it often indicates that they believe the price is undervalued and poised to rise significantly in the near future.
If whale accumulation continues, it could lead to a change in positive sentiment in the broader Bitcoin investment market. The next Bitcoin halving is also underway, and many analysts are predicting price growth around the event.
Featured image from Pexels
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