Large Bitcoin holders, including institutional investors, have acquired over 34,000 BTC since late December, signalling renewed buying pressure after the cryptocurrency's correction from its record six-figure high. According to Blocktrends head of research Cauê Oliveira, this accumulation marks a pivotal recovery phase for Bitcoin.
Why Are Bitcoin Whales Buying Again?
Institutions Capitalizing on Price Drop
After Bitcoin hit a peak of $108,000 on Dec. 17, wallets holding 1,000–10,000 BTC dumped 79,000 BTC in the following week, triggering a 15% price correction. Oliveira explained that these "large players" leveraged the subsequent consolidation to accumulate Bitcoin through fragmented, smaller trades, taking advantage of prices below $95,000.
As of Jan. 8, institutional investors have acquired 34,000 BTC, worth approximately $3.2 billion, driving a reversal in Bitcoin’s seven-day balance change, according to CryptoQuant data.
Shrinking Sell-Side Liquidity
Bitfinex analysts reported on Jan. 6 that sell-side liquidity in Bitcoin markets is diminishing, suggesting that the worst of the downward pressure has passed. Bitcoin’s price remains around $94,900 at the time of writing, down 2.3% on the day as U.S. jobs and economic data tempered expectations of further Federal Reserve interest rate cuts.
Future Outlook for Bitcoin Price
Analysts remain optimistic about Bitcoin's trajectory in 2025, citing expected pro-crypto policies under incoming U.S. President Donald Trump and increasing nation-state adoption of Bitcoin. Fidelity Digital Assets analyst Matt Hogan predicts more nation-states and government treasuries will seek strategic Bitcoin positions, signaling a shift toward institutional and sovereign adoption.
Blockware analysts anticipate a U.S. Bitcoin reserve could push the price to $150,000 in a worst-case scenario, with the potential for even greater highs under favorable market conditions.
Market Sentiment
With institutional investors back in accumulation mode and sell-side liquidity shrinking, Bitcoin's recovery appears to be gaining traction. Whether this trend leads to new record highs will depend on macroeconomic conditions, policy developments, and continued adoption by large players.
