Whales are adding $1 billion in Bitcoin daily in 2024, mimicking the massive 2020 accumulation before the price surge.
Bitcoin price stability in 2024 mirrors 2020, as whale accumulation builds market pressure for a potential breakout.
Institutional interest in Bitcoin through spot ETFs is fueling a 2024 whale frenzy, similar to the 2020 bull run buildup.
The market trends of Bitcoin in 2024 are mirroring those from mid-2020 when there was an increase in whale activity leading to a major price surge. For most of 2020, Bitcoin largely traded within the range of $10,000 as the whales accumulated more BTC in their wallets. This laid the foundation for Bitcoin to surge to $29,000 by the end of the year and beyond $64,000 in 2021.
https://twitter.com/QuintenFrancois/status/1842858333402751355 Whale Accumulation of Bitcoin Intensifies
Currently, holders of large numbers of bitcoins are adding to their wallet balance by about $1 billion daily. This level of accumulation is similar to the strategic purchasing level observed in 2020. Large investors used OFS platforms to purchase large quantities of Bitcoin without affecting the price.
The increasing institutional interest is evident in the recent whale acquisitions done mostly via custodial wallets and Bitcoin ETFs. This behavior demonstrates a strong belief in Bitcoin for the future. Large holders prefer to hold onto substantial amounts instead of frequent trading. Reports indicate that whales obtained 20,000 BTC, worth around $1.4 billion, in the month of May 2024.
Low Volatility Amid Whale Activity
Although there has been a significant increase in the number of whales holding Bitcoin, the price of BTC has stayed relatively steady. The price remained stable in 2020, consolidating for months before eventually breaking out.
Analysts are indicating that this may signal a forthcoming increase in prices. The price of Bitcoin recently exceeded $70,000 due to whale activity and a rise in institutional investment, with many analysts forecasting continued upward momentum.
The Role of Spot ETFs and Institutional Interest
Bitcoin price has been on the rise ever since the launch of spot ETFs, which has introduced institutional investors to a more convenient entry point of Bitcoin and thus has increased the proportion of whales. These ETFs have been accumulating Bitcoin right from their creation thus resulting in a reduction of supply and increased demand.
Currently, whales have control of close to 60% of the total circulating supply of Bitcoin which greatly influences the price through supply and demand mainly by constricting the supply.
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