Bitcoin Whales Since the beginning of the year we have been consistently collecting BTC in connection with bullish prospects for the future for the crypto industry. These elevated whale holdings showed investor confidence, which also translated into a bullish rally for Bitcoin over the past six months.
Despite recent corrections, on-chain data indicates that whale addresses have doubled their accumulation, increasing their holdings to levels we have not seen since 2022. Notably, the total BTC supply at addresses holding 1,000 BTC or more has reached a two-year high.
What’s Behind the Rise in Bitcoin Accumulation by Whales?
Based on information provided by IntoTheBlock, Bitcoin whale addresses recently reached a significant annual milestone in their quest to accumulate Bitcoin. Speaking of whales, this data is for Bitcoin addresses holding 1,000 units of BTC or more. This milestone means that addresses that belong to this cohort have reached their highest level in over two years.
The modern milestone in whale accumulation is just part of the story. According to chart data from IntoTheBlock, this accumulation spiked in January 2024, a period in which cryptocurrency markets began a full-blown bull run. After months of waiting, the Spot Bitcoin ETFs were finally launched in the US market, and that was when things really started to heat up. These modern investment vehicles made it easier than ever for institutional investors to invest in Bitcoin. As a result, newly wealthy investors jumped into the deep end, accumulating massive amounts of Bitcoin.
Accumulation via Spot Bitcoin ETF can be confirmed by Glassnode data. According to the Glassnode chat below, US spot ETFs have acquired over 900,000 BTC in just seven months. Funds continue to buy BTC even during correctionS
Another piece of the accumulation puzzle can be traced to Bitcoin miners, who added 4,500 BTC to their holdings in July, worth $300 million. At the time of writing, Bitcoin addresses holding more than 1,000 BTC account for 7.9 million BTC. To put that in perspective, that’s about 40% of the circulating supply of 19.7 million BTC.
What does this mean for bitcoin?
The accumulation of whales has been largely positive for the price of Bitcoin and has led to a corresponding boost in price. When whales make moves, the rest of the market tends to take notice. Their actions can affect smaller investors, potentially leading to a domino effect of increased Bitcoin buying. This accumulation milestone could also add to the bullish momentm, and the Bitcoin price is approaching the $70,000 level again.
At the time of writing, Bitcoin is trading at $66,715. Bulls are currently fighting to break and maintain over $67,000.
Featured image from Shutterstock, chart from TradingView
