YEREVAN (CoinChapter.com) — Bitcoin whales have purchased 34,000 BTC following the cryptocurrency’s December price drop. Blocktrends’ Cauê Oliveira shared on Jan. 8 through CryptoQuant that institutional investors are driving this recovery. The accumulated Bitcoin, valued at around $3.2 billion, has created buying pressure that supports the ongoing market rebound.
This accumulation occurred after wallets holding between 1,000 and 10,000 BTC sold off 79,000 BTC. The sales began shortly after Bitcoin’s peak price of $108,000 on Dec. 17, following an interest rate cut by the U.S. Federal Reserve. The sell-off caused a 15% market correction, bringing Bitcoin prices below $95,000.
Bitcoin Whale Activity Trends. Source: CryptoQuant
According to Oliveira, Bitcoin whales used the price dip to accumulate BTC through smaller trades, increasing their holdings during the market’s consolidation.
BTC’s Balance Turns Positive Post-Sell-Off as Bitcoin Whales Buy
After the December sell-off, Bitcoin’s seven-day balance change turned positive, signaling a return of large-scale purchasing. Data from CryptoQuant indicates that this trend reflects institutional confidence in the cryptocurrency’s future.
As of now, Bitcoin trades near $94,900, experiencing a 2.3% daily decline alongside the wider crypto market. U.S. economic reports on jobs and other metrics have dampened expectations for further interest rate cuts, impacting market sentiment.
Bitcoin Price Chart January 2025. Source: TradingView
Bitfinex analysts noted on Jan. 6 that sell-side liquidity in Bitcoin markets is rapidly decreasing. They believe the downward pressure on Bitcoin prices has likely eased, suggesting a potential stabilization in the market.
Bitcoin Liquidity and Demand Chart. Source: Bitfinex Analysts Monitor Institutional Moves in Bitcoin
Notably, market analysts have observed rising interest in Bitcoin among institutional investors. Matt Hogan, a research analyst at Fidelity Digital Assets, stated in a Jan. 7 report that more governments, central banks, and sovereign wealth funds may establish Bitcoin holdings as part of their financial strategies.
Projections from Blockware analysts also suggest a U.S. Bitcoin reserve could push prices above $150,000. In an optimistic scenario, they estimate Bitcoin could exceed $400,000.
Bitcoin Price Forecast 2025. Source: Blockware
Meanwhile, Bitcoin’s market movements are closely watched as nation-states increase their adoption of the cryptocurrency.
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