News
Bitcoin Whales Gobble Up $90 Billion: Bull Run or False Signal?

Bitcoin Whales Gobble Up $90 Billion: Bull Run or False Signal?

Oct, 14 2024 5:08
Bitcoin Whales Gobble Up $90 Billion: Bull Run or False Signal?

Bitcoin's largest investors, known as "whales," have accumulated approximately $90 billion worth of the cryptocurrency since May. This significant inflow occurs against a backdrop of range-bound market conditions and may be qualified as a clearly bullish sign, experts say.

Axel Adler Jr., an analyst at CryptoQuant, revealed that investors holding over 1,000 BTC have rapidly increased their balances. Over the past six months, these whales have amassed about 1.5 million BTC. This represents a substantial capital inflow, valued at approximately $90 billion at an average price of $60,000.

The accumulation comes at the expense of smaller investors - many sold at a loss during this period.

Data indicates a marked growth among whale holdings. In early May, when Bitcoin traded between $60,000 and $65,000, whales held only 335,000 BTC. Despite price stagnation, they continued to accumulate. Whales now hold around 1.9 million BTC. This trend suggests strong short-term confidence among high-net-worth investors.

Recent market movements have not deterred accumulation. Yesterday, Bitcoin fell below $59,000 for the first time this month, triggering significant liquidations. However, large holders, representing 0.1% of the circulating supply, netted an additional 629 BTC. Two days prior, this figure was even higher, with an influx of 2,480 BTC.

CryptoQuant data shows a decline in Bitcoin's exchange reserve. It fell from 2.576 million tokens at the start of October to 2.571 million, and this further reflects ongoing accumulation. At the time of writing, Bitcoin traded at $64,200. Technical indicators present a mixed picture. The DMI shows declining selling pressure, while the Williams %R indicates a neutral stance at -40.74.

Analyst Peter Brandt predicts Bitcoin could reach $150,000 this cycle. However, he warns that failure to break out of the current range could lead to a severe price drop, potentially up to 75%, so the market remains poised between accumulation and uncertainty.

Latest News
Show All News