Bitcoin‘s price continues to hold above $30,000 and is making higher highs, which is encouraging. The fact that the BTC price has risen almost 2-fold from levels around $15,550 signifies that the bottom has been seen in the bear markets. However, more is needed for the bull season. Volumes are still quite weak. But the story of the new season is already forming.
The Current Status of Bitcoin Whales
Bitcoin whales and sharks have accumulated 71,000 BTC in the past three weeks when the asset’s value has largely been “boring”. American institutions increased their investments in the flagship asset during this period. Large investors returned to the field following the applications for spot Bitcoin ETF.
Blockchain analytics firm Santiment’s data shows that addresses holding between 10 and 10,000 BTC have been very active in the past few weeks. These addresses have accumulated more than 71,000 BTC valued at $2.15 billion since June 17.
According to the market analysis platform, wallets holding more than 10,000 BTC were not included because such addresses usually belong to exchanges.
Will Cryptocurrencies Increase?
The accumulation mentioned in the first section is a sign of high confidence in BTC. However, considering that BTC mostly moved in the range of $30,000-31,000 during this period, the situation becomes even more surprising. The recent interest of traditional finance institutions in offering Spot Bitcoin exchange-traded funds (ETFs) has steered the bullish sentiment around BTC. The appetite for risk in the market increased as BlackRock‘s application on June 15 was followed by Fidelity and other financial institutions.
Glassnode also observed a significant increase in the shares of U.S. institutions in Bitcoin supply. The firm wrote that if the trend continues, it could signal a potential change in supply dominance.
Crypto analyst Miles Deutscher suggested that the sector is witnessing the “beginning of widespread institutional BTC accumulation”. Gemini co-founder Cameron Winklevoss said;
“The Great Accumulation of Bitcoin has begun. Everyone watching the rush of ETF applications understands that the opportunity to buy pre-IPO Bitcoin is about to slip away before ETFs are launched.”
BlackRock CEO Larry Fink also changed his stance on BTC and is now praising it as an “international asset”. Fink believes that this could be an alternative to other assets based on countries’ fiat currencies.
