- Bitcoin Whales have been splurging this year.
- Larger wallets added $3 billion worth of bitcoins to their bags.
- While Whales and institutions accumulate, smaller wallets have been selling.
Bitcoin has become a hot commodity following the titanic success of the spot ETFs. Demand for the reigning crypto king shows no signs of slowing down, even in the face of major pullbacks.
Amid this frenzy, January is an exciting month for Whales as they gobble up bitcoins in massive quantities, leaving crumbs for smaller wallets.
Bitcoin Whales Accumulate
Bitcoin Whales have been on a massive shopping spree since the beginning of this year. According to data analytics firm IntotheBlock, wallets holding at least 1,000 bitcoins have boosted their holdings by $3 billion or approximately 76,000 bitcoins.
At the time of writing, Whales held a staggering 7.8 million bitcoins, boasting a cumulative value of approximately $294 billion.
Demand from these larger wallets has been rising since the start of the year, even in the wake of Bitcoin’s 21% crash from its recent peak at $49,000. Following its dip to $38,500, Whales snagged up 10,000 bitcoins, amounting to over $421 million, leading to the asset recovering by 10%.
At press time, Bitcoin exchanged hands at $42,195 with a trading volume exceeding $17 billion.
Alongside whales, institutions have also filled their bags, particularly Bitcoin Spot ETF issuers. Industry giants BlackRock and Fidelity have amassed nearly $4 billion worth of Bitcoin, or 94,000 bitcoins, in the first two weeks of its ETF trading.
However, smaller wallets have been disappearing while Whales and institutions add to their bags.
Smaller Bitcoin Wallets Decline
Since the beginning of this year, Bitcoin wallets holding under one bitcoin have rapidly declined. Data analytics firm Sentiment reports a decrease of 0.94% in these wallets, suggesting market participants are exiting their positions or have been liquidated in the recent crash.
However, extrapolating historical trends, Santiment indicates that a price surge could be in the books. According to the data analytics firm, the decline in smaller wallets is a sign of capitulation, which can lead to a potential price bounce in the following weeks.
On the Flipside
- Crypto analysts suggest that a Bitcoin supply crunch is on the horizon because of the success of the spot ETFs.
- With the intense institutional interest in Bitcoin, retail investors could face challenges in accessing and participating in the market.
Why This Matters
Larger wallets accumulating Bitcoin this aggressively can have significant implications for the crypto market, including shaping market sentiment, price performance, and stability of the digital asset.
Read about BlackRock’s latest milestone:
BlackRock Bitcoin ETF Hits $2B AUM Milestone in Two Weeks
Read more on Charles Schwab’s potential entry into the Bitcoin ETF space:
Charles Schwab Bitcoin ETF: Analysts Predict Firm’s Entry Soon