According to Blocktrends analysts, large holders seem to be buying heavily again after Bitcoin prices fell from record six-figure highs at the end of 2024.
Large holders are rebuilding positions
Cauê Oliveira, head of research at Blocktrends, stated in an article published on CryptoQuant on January 8 that approximately 34,000 Bitcoins, worth about $3.2 billion, have been purchased by 'institutional investors', providing buying support for the current market recovery of Bitcoin.
Cauê Oliveira explained that this wave of buying occurred within days after December 21, when wallets holding 1,000 to 10,000 BTC sold 79,000 Bitcoins. Previously, Bitcoin reached a high of over $108,000 on December 17, due to the U.S. Federal Reserve announcing interest rate cuts. However, subsequent large-scale selling led to a correction of about 15% in Bitcoin prices.
He added: "Big players are using the market consolidation period to start making large decentralized trades, buying heavily when Bitcoin prices are below $95,000."
However, as of the time of writing, due to weakening U.S. employment and economic data diminishing investor expectations for interest rate cuts, coupled with the U.S. Department of Justice approving the sale of $6.5 billion in Bitcoin seized from the Silk Road case, the overall cryptocurrency market has declined again, causing Bitcoin prices to drop to $94,000.
Most analysts maintain a bullish outlook
Although the current trend is not yet clear, analysts predict that Bitcoin still has a chance to see record gains this year. Bitfinex analysts stated in a market report on January 6 that selling liquidity in the Bitcoin market is 'rapidly shrinking', and the selling pressure from miners, long-term holders, and other groups has significantly eased. Analysts believe that while a deeper correction may still occur in the first quarter of 2025, the overall tightening of supply and bullish sentiment among miners indicate that Bitcoin is likely to rise further in the medium term.
In addition, Negentropy, co-founder of Glassnode, pointed out that the amount of Bitcoin flowing into exchanges surged at the end of 2024 (possibly for selling or as collateral), but by 2025, this trend has reversed.
BTC Exchange Balances Reveal Bullish Sentiment After a year-end rise in BTC moving to exchanges (likely for selling or collateral), the trend has reversed in 2025. Significant outflows from exchanges (e.g., Binance) suggest buyers are withdrawing BTC to cold storage,… pic.twitter.com/qQKzGFVDnT
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) January 8, 2025
Data shows that exchange Bitcoin balances are significantly declining, indicating that investors are withdrawing Bitcoin to cold wallets. Negentropy believes this reflects their confidence in the medium-term holding of Bitcoin and their intention to 'HODL'.
At the same time, Fidelity Digital Assets research analyst Matt Hogan also expressed optimism about Bitcoin's future trends in a report on January 7, stating that more countries, central banks, sovereign wealth funds, and government treasuries are expected to seek to establish strategic positions in Bitcoin.
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