The Accumulation of Bitcoin (BTC) Whales
Bitcoin whales, or large holders of BTC, have been increasing their holdings since the beginning of the year. According to data from IntoTheBlock, these whales have accumulated an additional 76,000 BTC, equivalent to about $3 billion. This brings their total holdings to almost 7.8 million BTC.
In January alone, the whales purchased 76,000 BTC, which accounts for nearly 40% of the overall increase in the past four months. It is worth noting that their accumulation started before the launch of new Bitcoin spot ETFs on US exchanges and continued even after the price started to decline.
The Bearish Forecasts
Despite several bearish predictions circulating during this period, the actions of Bitcoin whales contradict these forecasts. Historically, there has been a mini-bull run followed by a strong drop before halving events. However, with less than three months until the next halving, the price of Bitcoin tends to stabilize. This weakens the hypothesis of a pre-halving retracement in 2024.
Other bearish forecasts include the return of 140,000 BTC from Mt.Gox, continued liquidation of Bitcoin by Grayscale, and the possibility of the Fed not cutting rates in March.
The Optimistic Forecasts
On the other hand, there are optimistic predictions from analysts. Whales wouldn’t be accumulating if they were pessimistic. Some analysts predict a return above $43,000 and another bullish period triggered by this rise. Others believe that the price could reach around $49,000 before correcting to around $45,000 by the April halving.
One element behind these predictions is the potential launch of new Bitcoin spot ETFs on the Hong Kong Stock Exchange by June or July. If this happens, it could have a similar impact on the price of BTC as the news of possible ETF launches in the USA.
Bitcoin Present on Exchanges
While crypto exchanges hold a significant number of BTC, the majority of Bitcoin held by whales is not on exchanges. CryptoQuant data shows that approximately 2.1 million BTC are on exchanges, with only a minimal increase in recent months. In fact, over the past year, BTC held on exchanges has decreased.
The low number of BTC held on exchanges aligns with the data from IntoTheBlock regarding the accumulation of BTC by whales.
Hot Take: Bitcoin Whales Accumulate Despite Bearish Forecasts
Contrary to bearish predictions, Bitcoin whales have been accumulating BTC since the beginning of the year. Their increased holdings of 76,000 BTC, equivalent to $3 billion, indicate a different perspective. This accumulation goes against historical patterns before halving events and suggests a potential stabilization of the price leading up to the next halving.
While there are both bearish and optimistic forecasts from analysts, the actions of whales support the more positive outlook. The launch of new Bitcoin spot ETFs on the Hong Kong Stock Exchange could further influence the price in the coming months. Additionally, it is notable that most of the BTC held by whales is not on exchanges, indicating their long-term investment strategy.
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