Ki Young Ju, a prominent figure in the crypto community and the CEO of CryptoQuant, has analyzed the current phase of Bitcoin. According to him, the flagship cryptocurrency is enjoying an accumulation period as large investors, commonly known as whales, have acquired a sizeable amount of BTC in a month.
Within this period, the price of the digital asset has exhibited a very volatile pattern, dropping as low as $53k and as high as $68,000. The interesting price movement appears to be influenced by several key events and outcomes in the crypto market including the Mt. Gox creditors’ repayments and the unending Bitcoin dump by the German government. While some investors were fraught with FUD, others took the initiative to accumulate a significant amount of coins.
Bitcoin is in an Accumulation Phase
In a recent post on X (formerly Twitter), Young Ju explained that July has seen notable whale movements shifting BTC to holding wallets. According to his post, 358,000 BTC has moved to permanent holders’ addresses within this time frame. Also, he noted that in July, the spot Bitcoin ETF saw inflows of about 53k BTC (worth $3.5 billion). Soso Value data shows that Bitcoin ETF received a daily total net inflow of $31.16 million as of July 25. Interestingly, this number reached as high as $486 million on July 22.
Source: Ki Young Ju/X
Young Ju added that even though not all remaining Bitcoin is in custody wallets, it is clear that the whales are aggressively accumulating in a way that hasn’t been seen before. In the same thread, the CryptoQuant CEO stressed that the recent large BTC inflow to permanent holders’ addresses is not a result of ETF wallets. “These wallets are neither exchange nor miner wallets and have no outflows; they are mostly custodial wallets,” he said.
Dormant Large BTC Address Reactivates After 11 years
Meanwhile, a Bitcoin wallet address holding a substantial amount of BTC has reawakened after being inactive for more than 11 years. According to a report by Whale Alert, a popular crypto large transaction tracker, the address contains about 750 BTC, valued at $48.03 million. The address, labeled as ‘1a6Zn…ivbac,’ was last active about four years after the official launch of Bitcoin.
A dormant address containing 750 #BTC (48,034,134 USD) has just been activated after 11.2 years!https://t.co/mbTikyqTwr
— Whale Alert (@whale_alert) July 25, 2024
The news has sent tongues wagging in the crypto community with members talking about the large amount of BTC kept in the wallet for such a long time. However, before that, another large transaction was recorded by the crypto tracker. Whale Alert reported that an unknown whale moved a staggering 48,000 BTC, worth $3.1 billion, to the Kraken exchange. Sizeable transfers like this to centralized exchanges often signify a sell-off. This has cast another layer of doubt about the future price trajectory of the coin.
Nevertheless, the sentiment surrounding the crypto market remains positive as evident in the crypto fear and greed index data. At press time, the BTC price traded at $67,102. This value signifies a 4.58% increase over the last day. Moreover, Bitcoin has touched the bottoms and tops of $63,514.78 and $67,328 respectively.
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