Bitcoin continues to trade between $60,000 and $70,000. On-chain analysis indicates a wave of new optimism. On-chain analyst Willy Woo highlighted on May 7th that high-net-worth BTC investors are rapidly accumulating.
Bitcoin Charts and Whales
A chart shared by the analyst shows that whales owning between 100 and 1,000 BTC have increased their purchases in the last two months. Woo states that this participation marks the “strongest buying frenzy” by whales in recent times.
Moreover, while the excitement continues, some believe this sharp increase in BTC by this investor group is linked to spot Bitcoin exchange-traded fund (ETF) issuers.
Following the United States Securities and Exchange Commission (SEC) approval of the first spot ETFs in January, issuers including Fidelity, Bitwise, and ProShares now control over 850,000 BTC.
Woo disagrees with this view, stating that the recent rise is not due to the participation of this Wall Street group.
He also highlights inconsistencies when looking at public spot ETF flow data.
For instance, while the mentioned whales have been buying BTC for two months, owning over 220,000 BTC according to network activity, there has been a decrease in spot ETF flows during this period with only about 165,000 BTC purchased.
Will Bitcoin Prices Rise?
Woo also notes that the recent accumulation activity in Bitcoin over the last two months did not stem from a single large purchase. Instead, there was a clear, continuous buying activity over a 30-day period.
This suggests that the whales’ approaches are deliberate, and large investors are strategically eager to accumulate during periods of low prices.
Looking at on-chain activities, it is evident that whales are involved and actively purchasing.
As of the time of writing, BTC prices, which have fallen below $62,500, appear to continue their decline from a peak of $73,800.
