Bitcoin whales have been consistently accumulating BTC since the beginning of the year amidst a bullish future outlook for the crypto industry. These elevated whale holdings showed investor confidence, which also translated into a bullish rally for Bitcoin over the past six months.
Despite the recent corrections, on-chain data indicates that whale addresses have doubled down on the accumulation, pushing their holdings to levels we haven’t seen since 2022. Particularly, the total BTC supply in addresses holding 1,000 BTC or more has hit a two-year high.
What’s Behind The Surge In Whale Bitcoin Accumulation?
Based on the information provided by IntoTheBlock, Bitcoin whale addresses have recently accomplished a significant annual milestone in their quest to accumulate Bitcoin. When talking about whales, this data follows Bitcoin addresses holding 1,000 BTC units or more. This milestone means that the addresses that fall into this cohort have reached their highest level in over two years.
The new milestone in whale accumulation is only a piece of the whole story. According to IntoTheBlock’s chart data, this accumulation shot up massively in January 2024, a period when the crypto markets kickstarted a full bullish momentum. After months of waiting, Spot Bitcoin ETFs were eventually introduced to the US market, and this was the moment when things really started to heat up. These new investment vehicles made it easier than ever for institutional investors to invest in Bitcoin. As a result, new wealthy investors dove in headfirst, accumulating massive amounts of Bitcoin.
The accumulation through Spot Bitcoin ETFs can be reaffirmed by Glassnode data. According to the Glassnode chat below, US spot ETFs have acquired more than 900,000 BTC in a span of just seven months. Funds continue to buy up BTC even during corrections.
Another piece of the accumulation puzzle can be traced back to Bitcoin miners, who increased their holdings throughout July by 4,500 BTC, amounting to a value of $300 million. At the time of writing, Bitcoin addresses holding 1,000+ BTC accounts for 7.9 million BTC. To put this into perspective, that is around 40% of the circulating supply of 19.7 million BTC.
What Does This Mean For Bitcoin?
Whale accumulation has largely been positive for the price of Bitcoin and has led to a corresponding price surge. When whales make moves, the rest of the market tends to notice. Their actions can influence smaller investors, potentially leading to a domino effect of increased Bitcoin buying. This accumulation milestone could also add to bullish momentum, with Bitcoin now approaching the $70,000 price level again.
At the time of writing, Bitcoin is trading at $66,715. Bulls are currently struggling to break and maintain above $67,000.
Featured image from Shutterstock, chart from TradingView