The number of Bitcoin whales has hit a level not achieved since January 2021, while retail investors have become more cautious.
Bitcoin’s latest price action has been marked by a notable increase in whale activity. The number of large holders — entities controlling at least 1,000 BTC — has climbed to its highest point since January 2021.
According to data from Glassnode, shared by André Dragosch, head of research for Europe at Bitwise, the number of these investors reached 1,678 earlier this week. This growing accumulation by large-scale holders signals growing optimism in Bitcoin’s price BTC $108 314 24h volatility: 2.4% Market cap: $2.16 T Vol. 24h: $84.93 B potential.
Whales, defined as network entities controlling clusters of wallets holding at least 1,000 BTC, play a crucial role in BTC price value due to their ability to impact liquidity and price. As more whales accumulate, it indicates their confidence in the long-term value of Bitcoin, even as prices near historic highs.
Retail Investors Hold Back
While whale activity is surging, retail investors, those with smaller holdings, seem to be taking a more cautious approach. Data from CryptoQuant reveals that retail Bitcoin accumulation has slowed as the crypto approaches the $70,000 mark. Over the past 30 days, retail holdings have increased by just 1,000 BTC, a historically slow pace of accumulation.
In contrast, bigger investors, particularly those holding between 1,000 and 10,000 BTC, have continued to accumulate at a much faster rate. Since the beginning of this year, these larger investors have added 173,000 BTC to their holdings, compared to just 30,000 BTC for retail investors. This pattern suggests a growing divide in market sentiment, where smaller investors are more hesitant to buy in at high prices, while larger investors are betting on further price appreciation.
After briefly topping $69,000 on Monday, Bitcoin has settled near $67,350, just 10% shy of its all-time high of $73,800. Thursday saw a minor price dip to $65,400, primarily driven by a strengthening US dollar index and rising Treasury yields, which have weighed on high-risk assets like Bitcoin.
Optimism
However, some analysts remain optimistic, arguing that rising yields won’t suppress Bitcoin for long. They believe the path of least resistance for BTC remains upward, especially as institutional interest in the cryptocurrency continues to grow.
Despite recent fluctuations, Bitcoin is still performing well compared to previous months. Bitcoin’s value has risen by 6% over the past 30 days.
As evident with the almost constant inflow of capital into US spot Bitcoin ETFs, institutional investors’ interest is also rising. On Wednesday, US spot Bitcoin ETFs registered a net cash inflow of $190 million, led by Blackrock’s iShares Bitcoin Trust (IBIT).
Moreover, the recent surge in stablecoin supply on exchanges suggests that more buying pressure may be on the way, likely from institutional investors.
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