Institutional Bitcoin demand in the U.S. soars as whales add 670K BTC, doubling the inflow compared to retail-focused spot ETFs.
Bitcoin’s recovery aligns with rising whale holdings in 2024, reflecting institutional confidence and a push for price momentum.
Whale wallets signal optimism in 2024, with BTC holdings up, indicating institutions see Bitcoin as a resilient long-term asset.
670,000 BTC have entered whale wallets in the last 12 months, indicating a rise in institutional demand for Bitcoin in the US. There is a tendency toward large-scale accumulation as shown by institutional demand for custodial wallets doubling that of retail.
Although inflows into retail spot ETFs totaled about 278,000 BTC, institutional investors are driving the market. This pattern is consistent with the recent, highly motivated price recovery of Bitcoin.
https://twitter.com/ki_young_ju/status/1851132489420718423 Growing Whale Holdings Reflect Accumulation Trends
Whale holdings, defined as wallets holding between 1,000 and 10,000 BTC, illustrate growing institutional confidence. From early 2018 to mid-2019, whale wallets expanded, with notable price stability and brief increases in Bitcoin’s value.
This trend demonstrates how whale investors react to changes in the market and highlights an early stage of accumulation. Notably, whales kept accumulating as the price of Bitcoin rose in 2019, bolstering the asset's potential for development.
But in late 2019, this trend momentarily reverted. A little decline in whale holdings accompanied by a decline in Bitcoin prices suggests that larger investors are being cautious. But 2020 was a moment of whale accumulation that had never been seen before, with holdings increasing in lockstep with Bitcoin's rise to record highs by early 2021. This association suggests that major price fluctuations for Bitcoin are frequently preceded by institutional demand.
Recovery and Growth Amid Market Volatility
As seen by decreasing whale holdings and declines in the price of Bitcoin, the market had a bearish period in 2022. In line with the general downward trend, whale holdings hit a negative peak. However, whales started to show fresh interest in early 2023 and increased their holdings steadily. The fact that this increase accompanied Bitcoin's slow rebound suggests that whale demand and price resiliency are positively correlated.
Whale holdings have increased to levels typical of previous bull markets into 2024, indicating that big investors have a positive outlook. This institutional demand could play a significant role in bolstering Bitcoin's price rebound and propelling it to all-time highs.
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