Bitcoin Whales Hold Firm Amid Record Highs, Anticipating Further Price Increase
Summary:
Amid Bitcoin's recent surge beyond $70,000, major holders known as "whales" are not in a hurry to sell, suggesting they expect the value to rise further. As of March 7, addresses holding at least 1,000 Bitcoin have increased, albeit still lower than the record high in February 2021. Strong demand for US Bitcoin exchange-traded funds (ETFs) is possibly fueling the count of these Bitcoin-hoarding addresses. Additionally, whale-to-exchange transfer volumes have only slightly increased, indicating more new investors and less profit-taking by wealthier ones even at record prices. Factors suggest Bitcoin's next big target could be $92,500.
The recent surge in Bitcoin's value that has pushed it over the $70,000 threshold hasn't provoked a selling frenzy among major Bitcoin holders or "whales", according to the latest on-chain data. As of March 7, the count of unique addresses owning at least 1,000 Bitcoin grew to 2,104, which is a growth but still undershoots the record of 2,489 such addresses observed in February 2021 when Bitcoin was worth just over $46,000.
The rise in the number of these Bitcoin-hoarding addresses could be partially attributed to American spot Bitcoin exchange-traded funds (ETFs), which achieved a total trading value of over $52.5 billion on March 4. The whales' decision to hold onto their Bitcoins at these high valuations might indicate their expectations of further price increase. Due to the massive influence of whale trades on the market, this is notable.
Julio Moreno, chief research officer at on-chain data firm CryptoQuant, took notice of this growth in a post on platform X (formerly Twitter) on March 7, declaring that the whale holdings of Bitcoin are experiencing a parabolic surge.
Additional proof that whales are not racing to liquidate their Bitcoin comes from several metrics evaluating volumes between exchanges and whales. According to data from Glassnode, transfers from exchanges to whale wallets have also hit new record highs this month, while the volume of transfers from whales to exchanges has seen just a slight increase compared to past bull and bear markets. Altogether, these metrics point to a substantial influx of new Bitcoin investors and a lack of profit-taking among high-wealth investors, even with Bitcoin's record-breaking prices.
A major driving force behind the demand for Bitcoin from a fundamental standpoint is the ongoing purchasing spree involving US spot Bitcoin ETFs such as the BlackRock iShares Bitcoin Trust (IBIT), which saw its highest daily inflow on record at $788 million on March 5.
Various factors including technical, on-chain, and fundamental indicators suggest that Bitcoin's next milestone could be around the $92,500 mark. Notably, Bitcoin charts recently showed a triangle pattern resembling a bull pennant, which is typically regarded as a sign of bullish continuation.
Please note that this article doesn't provide investment advice or recommendations. Every investment or trading move carries risk and readers should thoroughly research before making any decisions.
Published At
3/9/2024 11:06:55 AM
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