Despite Bitcoin’s (BTC) underwhelming performance over the past month, whales have been impressively accumulating the crypto-asset, showcasing their confidence in its long-term potential.
Notably, Bitcoin’s price experienced a sharp slump, dipping as low as $49,200 in early August due to various macroeconomic issues that prompted investors to adopt a more risk-averse stance towards crypto assets.
However, Bitcoin managed a remarkable recovery in the following weeks, reclaiming the $60,000 level last week before a slight dip over the weekend. While various indicators have shown mixed signals for BTC, the recent rally has largely been attributed to the substantial purchases by whales and sharks.
Recent data from blockchain analytics firm Santiment reveals a significant uptick in the number of whale wallets, which are accounts holding 100 or more BTC. According to the firm, this surge has pushed the total number of these whale entities to a 17-month high, with 283 new wallets added in the last 30 days. This increase in whale activity comes even as Bitcoin’s price experienced a sharp decline, dropping nearly 12% over the past month.
As of August 28, the firm noted that whales and slightly smaller holders, known as “crypto sharks” (those with at least ten BTC), had collectively purchased over 133,000 BTC during this period. This aggressive buying spree, valued at approximately $7.6 billion, highlights these entities’ significant influence in the market.
On September 3, Santiment, however, observed a broader trend of declining whale activity across most crypto assets. Nevertheless, they clarified that this reduction doesn’t necessarily indicate a market downturn or large-scale sell-offs. Instead, top addresses become more active during periods of high volatility.
“Be mindful that a decline in whale activity doesn’t necessarily mean they are dumping or prices are likely to drop as a result. Top addresses notoriously become most active during times when volatility is at its highest. Overall, among activity that is happening from whales, Santiment data still indicates a steady flow of accumulation despite less overall transactions.” The firm noted.
Ki Young Ju, founder of the prominent crypto analytics platform CryptoQuant, recently weighed in on the impact whales might have on Bitcoin’s price in the coming months. He suggested that whales will likely push prices higher based on historical patterns.
“In the last Bitcoin halving cycle, the bull rally began in Q4. Whales won’t let Q4 be boring with a flat YoY performance,” he tweeted.
Additionally, last week, analysts from crypto research firm Kaiko downplayed concerns about liquidity risks from the remaining Mt. Gox $2.27 Billion BTC sales and other large holders like the U.S. government, which still controls over 200,000 BTC, suggesting that Bitcoin could continue to exhibit strength for the rest of the year.
Bitcoin traded at approximately $60,061 at press time, reflecting a 0.35% surge over the past 24 hours.
