2024-01-29 17:04:09
Whales began to aggressively fill their BTC Price wallets this year, increasing their holdings by around 76,000 bitcoins.
After the introduction of spot ETFs, BTC became an even more sought-after commodity. Demand for Bitcoin shows no signs of slowing down, even with major downturns.
Amid all this madness, January is still an exciting month for whales as they gobble up bitcoins in huge quantities, leaving smaller wallets with crumbs.
Bitcoin whales are piling up
Bitcoin whales have been on a massive buying spree since the beginning of the year. According to data analytics firm IntotheBlock, wallets with at least 1,000 bitcoins increased their wealth by $3 billion, or about 76,000 bitcoins.
At the time of writing, one whale held a staggering 7.8 million bitcoins, with a cumulative value of approximately $294 billion.
Bitcoin whales balance. source: IntotheBlock
Demand from major wallets has been increasing since the start of the year, even after bitcoin’s 21% plunge from its recent peak of $49,000. After falling to $38,500, whales acquired 10,000 bitcoins, or more than $421 million, resulting in a 10% drop in the asset’s value.
Next to the whales the institutions also stuffed themselves, especially Bitcoin Spot ETF issuers. BlackRock and Fidelity alone accumulated nearly $4 billion worth of bitcoins, or 94,000 bitcoins, in the ETF’s first two weeks of trading.
Either way, smaller portfolios are starting to disappear as whales and institutions continue to fill their purses.
Decline of smaller Bitcoin wallets
Since the beginning of the year, the number of wallets under one bitcoin has dropped precipitously. Data analytics company Sentiment reported a 0.94% decline, indicating that market participants are exiting or liquidating positions during the recent crash.
However, Santiment, by extrapolating historical trends, indicates that rising prices may be in the cards. According to the data analysis company, the decrease in smaller wallets is a sign of capitulation, which could lead to a possible price increase in the coming weeks.
Why is this important?
Larger wallets hoarding bitcoin in such an aggressive manner could have a significant impact on the crypto market. They can also influence market sentiment, exchange rate developments and the stability of the digital asset.
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