Bitcoin whales have been consistently accumulating BTC since the start of the year amid a optimistic outlook for the future for the crypto industry. These increased whale holdings showed investor confidence, which also translated into a bullish rally for Bitcoin over the past six months.
Despite the recent corrections, on-chain data indicates that whale addresses have doubled down on their accumulation, pushing their holdings to levels not seen since 2022. Notably, the total BTC supply held in addresses holding 1,000 BTC or more has reached a two-year high.
What’s Behind the Increase in Whale Bitcoin Accumulation?
Based on the information Provided by IntoTheBlock, Bitcoin whale addresses recently reached a significant annual milestone in their quest to accumulate Bitcoin. When we speak of whales, this data tracks Bitcoin addresses that hold 1,000 BTC units or more. This milestone means that addresses that fall into this group have reached their highest level in over two years.
The new whale accumulation milestone is only part of the story. According to chart data from IntoTheBlock, this accumulation skyrocketed in January 2024, a period when the crypto markets gained full bullish momentum. After months of waiting, Spot Bitcoin ETFs were finally introduced to the US market, and this was when things really started to heat up. These new investment vehicles made it easier than ever for institutional investors to invest in Bitcoin. As a result, newly wealthy investors jumped in headfirst and accumulated massive amounts of Bitcoin.
The accumulation via Spot Bitcoin ETFs can be confirmed by Glassnode data. According to the Glassnode chat below, US spot ETFs have acquired over 900,000 BTC in a span of just seven months. Funds continue to buy up BTC even during correctionS.
Another piece of the accumulation puzzle can be traced to Bitcoin miners, who increased their holdings by 4,500 BTC in July, worth $300 million. At the time of writing, Bitcoin addresses holding 1,000+ BTC are worth 7.9 million BTC. To put that in perspective, that’s roughly 40% of the circulating supply of 19.7 million BTC.
What does this mean for Bitcoin?
Whale accumulation has been largely positive for Bitcoin’s price and has led to a corresponding price increase. When whales make moves, the rest of the market tends to take notice. Their actions can influence smaller investors, potentially leading to a domino effect of increased Bitcoin buying. This accumulation milestone could also add to bullish momentumm, with Bitcoin now approaching the $70,000 price point again.
At the time of writing, Bitcoin is trading at $66,715. Bulls are currently struggling to break and stay above $67,000.
Main image from Shutterstock, chart from TradingView