Optimism Rises as High-Net-Worth Whales Accumulate Bitcoin
As Bitcoin hovers between $60,000 and $70,000, on-chain analysis is sparking a new wave of optimism. Willy Woo, an on-chain analyst, recently highlighted a positive development on Twitter on May 7: high-net-worth Bitcoin holders are rapidly accumulating the digital asset.
Whales’ Buying Spree
In a recent analysis, Woo pointed out that entities holding between 100 and 1,000 BTC, known as whales, have been actively acquiring Bitcoin in the past two months. This surge in accumulation by whales is highlighted as the most significant buying spree by this cohort in recent times.
While some suggest that the sharp increase in BTC accumulation by these whales could be attributed to spot ETF issuers, including Fidelity, Bitwise, and ProShares, Woo refutes this claim. The analyst argues that the uptick in whale activity is distinctive and not influenced by these institutional players.
Moreover, Woo noted a discrepancy between the publicly available spot ETF flow data and the whale activity. Despite spot ETFs purchasing around 165,000 BTC in the same period, whales have acquired over 220,000 BTC, indicating that institutional buying alone cannot explain the surge in whale accumulation.
Sustained Buying Pressure on Bitcoin – Will Bulls Break $73,800?
Woo further clarified that the accumulation of BTC by whales over the past two months was not a one-time massive purchase but rather a pattern of sustained buying over 30 days within this period. This deliberate accumulation strategy suggests that whales strategically acquired Bitcoin during price dips.
With whales actively accumulating Bitcoin based on on-chain activity, the market sentiment remains bullish. Bitcoin has been trading laterally since reaching its peak at $73,800, with a recent dip to $56,500 followed by a gradual recovery over the weekend.
For Bitcoin’s upward trajectory to continue, a decisive close above $70,000 and, ideally, $73,800 is crucial. Analysts anticipate a potential surge towards the $100,000 mark in the future.
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