Bitcoin (BTC) has surpassed the $68,000 mark following support at the $65,500 level. This rise in price coincides with a surge in the number of BTC held by whales, indicating growing confidence in the asset class and potentially signaling the end of the recent BTC correction.
The ownership of Bitcoin by whales has reached an all-time high, with over 670,000 BTC now held by this group. This development is likely to bring about a new wave of optimism among Bitcoin holders. Crypto analysis platform CryptoQuant has observed that when whale ownership turns positive, the price often experiences moderate declines or remains stable, which they refer to as a calm before a potential storm in the long term.
Another platform, Santiment, has confirmed the emergence of 297 new whale wallets holding over 100 BTC in the past two weeks. In contrast, wallets holding less than 100 BTC have decreased by 20,629. This indicates that large holders have regained their positions after panic selling by individual investors, a trend that typically leads to bullish market outcomes.
ETF flows are also showing strong growth, with BlackRock’s Bitcoin ETF leading the way. BlackRock’s IBIT product has acquired approximately 30,000 Bitcoin over nine consecutive trading days and currently holds over 2% of the circulating BTC supply, which amounts to 399,355 BTC.
However, individual investors are taking a cautious approach following the rejection of the $69,000 price level. Bitcoin must surpass this level in order to sustain its bullish trend and regain lost strength.
While the increase in whale-held BTC is a positive development, CryptoQuant advises caution. The firm warns that if Bitcoin fails to establish a new all-time high before the upcoming U.S. presidential elections, there may be significant issues in the current bullish cycle. Therefore, investors are advised to closely monitor future developments and carefully consider their positions in Bitcoin.
In conclusion, the rise in BTC held by whales could have a positive impact on the market, but sustainable growth will depend on Bitcoin surpassing certain levels. Investors should formulate strategies that take into account the dynamics of the market and conduct their own research, as cryptocurrencies carry high volatility and risk.
