Bitcoin (BTC) has surpassed the $68,000 mark, experiencing a price increase after finding support at $65,500. This rise in price coincides with a surge in the number of BTC held by whales, reaching a new peak. In just two weeks, there has been a 297 increase in the number of wallets holding over 100 BTC, indicating a growing confidence in the asset class and suggesting that the recent BTC correction may be over.
The ownership of Bitcoin by whales has reached an all-time high, with this group holding over 670,000 BTC. This could bring about a new wave of optimism among Bitcoin holders. Crypto analysis platform CryptoQuant has observed that when BTC whale ownership becomes positive, the price often experiences moderate declines or remains stable. They describe this state as the calm before a potential storm in the medium to long term. Another platform, Santiment, has confirmed the emergence of 297 new Bitcoin whale wallets holding over 100 BTC in the last two weeks. In contrast, wallets holding less than 100 BTC have decreased by 20,629. The largest holders have regained their positions after individual investors engaged in panic selling, which usually leads to bullish market outcomes.
ETF flows continue to be strong, with BlackRock’s Bitcoin ETF leading the way. BlackRock’s IBIT product has accumulated around 30,000 Bitcoin over nine consecutive trading days and currently holds more than 2% of the circulating BTC supply, which amounts to 399,355 BTC. After the rejection of the $69,000 price level, individual investors are approaching the next BTC movement cautiously. In order to sustain its bullish trend, Bitcoin must surpass the $69,000 mark as it tries to regain lost strength.
Despite the positive developments in whale wallets, CryptoQuant advises caution. The firm warns that if Bitcoin fails to establish a new all-time high before the upcoming U.S. presidential elections, there may be significant issues in the current bullish cycle. Therefore, investors are advised to closely monitor future developments while entering new positions in Bitcoin.
The increase in BTC held by whales could have a positive impact on the market. However, it is crucial for prices to exceed certain levels for sustainable growth. Investors should devise strategies that take into account the dynamics of the market.