According to Cointelegraph, Bitcoin (BTC) is experiencing significant accumulation by whale wallets as its price approaches the $70,000 mark. This trend mirrors the period from July 2020 to January 2021, when Bitcoin saw a 550% rally. Woominkyu, a verified author on CryptoQuant, noted that this historical pattern has sparked investor excitement about a potential BTC breakout. The current Bitcoin whale ratio on spot exchanges is similar to the ratio observed around July 2020, following the COVID-induced market crash in March.
Woominkyu highlighted that whales are continuing to accumulate BTC despite short-term price volatility, positioning themselves for a long-term price increase. In a recent post, he stated, 'Whales are ready to welcome 'FOMO' by dumb money.' Cointelegraph previously reported that whale wallets had accumulated over 1.5 million BTC in the past six months, with each wallet holding more than 1,000 BTC, equivalent to $68 million at current values.
CryptoQuant CEO Ki-Young Ju pointed out that new whale wallets, with an average coin age under 155 days, have reached a new high of 1.97 million BTC. These new wallets, which are non-miner and potentially custodial, now represent 9.3% of the total Bitcoin supply, valued at $132 billion. Young-Ju mentioned that the BTC balance of these wallets has surged 813% year-to-date.
Despite the bullish outlook from whale wallets, long-term holders and miners may add some resistance to BTC’s price. IT Tech, an on-chain analyst at CryptoQuant, suggested that long-term holders might be stabilizing or taking profits. The analyst also noted that miners' profit sustainability has increased recently, correlating with Bitcoin price peaks. However, short-term holders are shifting towards accumulation, which could help the market absorb any selling pressure. Monitoring the activities of short-term holders, long-term holders, and miners is crucial as shifts in these areas can impact Bitcoin’s next move.
