This month, large investors in the crypto space, often referred to as crypto whales, have acquired a staggering $3 billion worth of bitcoin (BTC), as reported by IntoTheBlock, an onchain analytics firm.
Wallets holding over 1,000 BTC have seen a notable increase of approximately 76,000 BTC, reaching a cumulative total of nearly 7.8 million BTC. The month kicked off positively for the leading cryptocurrency, hitting highs above $48,900 on January 11, coinciding with the launch of U.S.-based spot exchange-traded funds (ETFs). However, subsequent price pressure led to a dip to around $38,500 last week, driven by profit-taking among investors in the Grayscale Bitcoin Trust (GBTC). Notably, some whales seized the opportunity to accumulate more bitcoin at lower prices through the Bitfinex exchange.
In their weekly newsletter, IntoTheBlock highlighted the dynamic, stating, “While bitcoin ETFs have seen net inflows of $820M, bitcoin whales have seen an increase of ~$3B (76,000 BTC) so far in 2024. Whales include any entity, individual, or fund (including the ETFs) holding over 1,000 BTC.” The visual representation indicates whale activity (blue line) in contrast to cryptocurrency prices (black line), illustrating how whales displayed confidence in the cryptocurrency’s long-term potential by augmenting their holdings during price declines.
Various market analysts and financial institutions, such as Standard Chartered, anticipate that the recently introduced ETFs will attract billions in investments, potentially propelling the cryptocurrency’s market price to $100,000 by the close of 2024. As of the latest available data, Bitcoin is currently valued at $41,980, according to CoinDesk.
