Bitcoin News Today: Bitcoin Whales Drive Accumulation Amid 94% Supply in Profit

Bitcoin’s network activity has surged, with 94% of its supply currently in profit, according to recent on-chain data [1]. This level of profitability increases the likelihood of profit-taking by short-term traders, which could lead to heightened volatility in the near term. However, the market has shown resilience as long-term holders (LTHs) continue to accumulate, signaling a strong belief in Bitcoin’s long-term potential [2].

Whales—large institutional investors and high-net-worth individuals—are playing a pivotal role in this accumulation trend. Their increased buying activity has pushed Bitcoin accumulation to record levels, indicating a broader confidence in the asset’s fundamentals and future price trajectory [3]. This aggressive accumulation by whales contrasts with the short-term trading behavior of retail investors, who are currently locking in gains amid rising prices [4].

The market dynamics reflect a tug-of-war between profit-taking and accumulation. While 94% of Bitcoin’s supply sitting in profit raises the risk of a sell-off, the sustained buying pressure from major players may help stabilize or even push prices higher [5]. On-chain metrics suggest that the underlying momentum in the Bitcoin network remains strong, with continued inflows from LTHs and whales. This trend may mitigate the impact of short-term volatility and support a more bullish outlook for the asset [6].

Recent developments also highlight the growing conviction among key market participants. For example, MicroStrategy, through its CEO Michael Saylor, added $18 million to its Bitcoin holdings, bringing its total BTC position to 628,946 coins [7]. Such moves underscore the increasing adoption of Bitcoin as a corporate treasury reserve asset. Additionally, Nakamoto CEO David Bailey announced intentions to purchase $1 billion worth of Bitcoin, further reinforcing the narrative of long-term institutional confidence [8].

At press time, Bitcoin traded at $118,724, maintaining gains from a recent rebound [9]. The price remained above both the 9-day and 21-day simple moving averages, indicating short-term support. The relative strength index (RSI) was near 58, suggesting that momentum remains neutral. Meanwhile, the moving average convergence divergence (MACD) lines were converging, hinting at the possibility of a bullish crossover if buying pressure persists [10].

Despite these positive technical indicators, the market remains sensitive to profit-taking risks. A correction could emerge if short-term traders decide to sell off their positions en masse. However, continued accumulation by whales and LTHs may cushion the impact of such a scenario, potentially leading to a quick rebound in prices [11].

In conclusion, Bitcoin’s market is at a pivotal moment. While 94% of its supply being in profit creates a volatile backdrop, the aggressive accumulation by whales and long-term holders points to a strong underlying demand. If this trend continues, it could help Bitcoin consolidate gains and set the stage for a new price leg higher, provided that short-term selling pressures are effectively managed [12].

Sources:

[1] Coinotag.com

[2] Coinotag.com

[3] Coinotag.com

[4] Coinotag.com

[5] Coinotag.com

[6] Coinotag.com

[7] SEC.gov

[8] Coinotag.com

[9] TradingView

[10] TradingView

[11] Coinotag.com

[12] Coinotag.com