Whales Accumulate $85M in Bitcoin as Institutional Interest Surges

Bitcoin has seen a surge in interest from large investors, commonly known as whales, who have been accumulating significant amounts of the cryptocurrency over the past few months. These whales have collectively purchased at least 1,000 Bitcoin each, totaling approximately $85 million. This buying spree comes at a time when Bitcoin has been trading well below its all-time high, suggesting that these investors perceive the asset as undervalued.

The renewed interest from whales is particularly notable given the overall decline in crypto market liquidity. In just the past two weeks, capital inflow has dropped from $8.2 billion to $2.38 billion. With fewer funds entering the market, assets that receive liquidity become more attractive, as they are likely to outperform others. The increased activity from whales in Bitcoin confirms that it may continue to lead market gains.

Institutional investors have also shown a strong bias towards Bitcoin. One whale, identified as “Abraxas Capital Mgmt,” has significantly increased its Bitcoin holdings from $2.8 million to $2.53 million since the beginning of April. Additionally, this whale holds another $43 million in LBTC, bringing its total holdings to $296 million. Institutional investors have also ended the week with inflows into Bitcoin ETFs, buying $106.90 million worth of BTC by week’s end. If this accumulation by whales and institutions continues, Bitcoin’s value could rise, potentially leading to a rally.

To determine whether this accumulation is temporary or sustainable, the behavior of long-term holders was examined. Using Bitcoin’s Coin Days Destroyed (CDD) metric, which indicates whether long-term holders are selling or holding, it was found that long-term holders are not selling. In fact, they have continued to hold their positions, even through market volatility. With whales accumulating, institutions rotating back in, and long-term holders staying put, Bitcoin has emerged as the primary liquidity magnet in a drying market. If these tailwinds persist, BTC may not just hold steady—it could be gearing up for its next rally.

Ask Aime: What is driving the surge in Bitcoin accumulation by whales and institutions?