Bitcoin’s price has been fluctuating between $60,000 and $70,000, and on-chain analysis suggests that there is a wave of optimism in the market. On-chain analyst Willy Woo pointed out on May 7th that high-net-worth BTC investors are rapidly accumulating more Bitcoin.
A chart shared by Woo shows that whales, who own between 100 and 1,000 BTC, have been increasing their purchases over the past two months. Woo describes this as the “strongest buying frenzy” by whales in recent times.
There are speculations that this surge in BTC purchases by whales is linked to spot Bitcoin exchange-traded fund (ETF) issuers. Since the United States Securities and Exchange Commission (SEC) approved the first spot ETFs in January, companies like Fidelity, Bitwise, and ProShares now control over 850,000 BTC. However, Woo disagrees with this view and argues that the recent rise in BTC prices is not due to the participation of this Wall Street group. He also points out inconsistencies in the public spot ETF flow data.
Despite the ongoing excitement, Woo notes that the recent accumulation activity in Bitcoin did not come from a single large purchase. Instead, there has been a continuous and deliberate buying activity over a 30-day period. This suggests that whales are strategically accumulating Bitcoin during periods of low prices.
On-chain activities indicate that whales are actively involved in purchasing Bitcoin. As of now, BTC prices have fallen below $62,500 and are continuing to decline from a peak of $73,800.
It’s important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
