Whales Accumulate 200,000 BTC, Boosting Bitcoin's Bullish Sentiment
1min read New substantial investors, known as "whales," have entered the Bitcoin market, accumulating over 200,000 BTC this month. These whales, defined as those holding at least 1,000 BTC wallets with an average acquisition age of under six months, have collectively acquired over 1 million BTC since November 2024. This accumulation trend is indicative of a resurgence in bullish confidence in Bitcoin's long-term performance. The recent decline in Bitcoin's price to multi-year lows has presented an opportunity for these large investors to "buy the dip" and potentially sell at a higher price in the future.
The holding time of Bitcoin by its investors has increased by 12% over the past week, further highlighting the gradual comeback in bullish sentiments toward the coin. The holding time of an asset’s transacted coins measures the average length of time its tokens are held before being sold or transferred. When this extends, it reflects stronger investor conviction, as investors choose to keep their coins rather than sell. This can help reduce the selling pressure as supply dries up gradually in the BTC market, driving up the coin’s value in the near term.
Despite the positive signs, Bitcoin's Elder-Ray Index continues to post red histogram bars, indicating bearish pressure. However, the size of these bars has gradually reduced over the past few days, suggesting that bearish pressure is weakening. This could slow down Bitcoin's downtrend and potentially lead to a rebound, with its price climbing toward $89,434. On the other hand, if selling pressure strengthens, Bitcoin risks plummeting to $77,114. The future of Bitcoin's price remains uncertain, but the recent surge in whale accumulation and the increase in holding time are positive indicators for the cryptocurrency's long-term performance.
According to digital asset analyst Onchained, the new movement reacts to fresh capital. This creates short-term support for the asset before the next bull phase, which is expected to drive it above $150k. The trend sparked off following President Trump’s election win in November. As predicted, institutional investor confidence grew, anticipating clear crypto rules and a favorable environment. The subsequent rise to the all-time high further grew optimism of the asset hitting a bull cycle peak.
However, after tapping a new all-time high above $108k, Bitcoin (BTC) and altcoins failed to sustain, ushering in extended bearish weeks. The wider crypto market nosedived into double-digit losses due to global markets. The United States’ new tariffs and trade wars impacted global sentiments, leading to sell-offs. At the moment, several crypto experts have called the bear cycle after weeks in the doldrums. US tech stocks also traded in a similar direction, reinforcing the market correlation.
