- Bitcoin continues to trade within the $60,000 to $70,000 range, with high-net-worth BTC holders rapidly accumulating the coin, according to on-chain analyst Willy Woo.
- Despite arguments that this could be due to spot Bitcoin exchange-traded fund (ETF) issuers, Woo maintains that the uptick is not due to Wall Street players.
- With Bitcoin prices trending sideways, analysts predict an eventual spike to $100,000.
Bitcoin whales are rapidly accumulating the coin, despite the cryptocurrency trading within the $60,000 to $70,000 range. This article delves into the details of this development and its potential implications for the future of Bitcoin.
High Net-worth Whales Accumulating
On-chain analyst Willy Woo has noted that whales, entities holding between 100 and 1,000 BTC, have been significantly accumulating the coin over the past two months. This has been described as the “strongest buying spree” by such whales in recent history. However, some argue that this sharp spike in BTC accrual could be due to spot Bitcoin exchange-traded fund (ETF) issuers, who now control over 850,000 BTC following the approval of the first spot ETFs by the United States Securities and Exchange Commission (SEC) in January.
Spot ETFs Not the Cause
Despite these arguments, Woo maintains that the uptick in BTC accumulation is not due to the involvement of Wall Street players. He explains that these entities are “distinct” and have been identified through forensic clustering techniques. Furthermore, Woo observes a discrepancy in publicly available spot ETF flow data. For instance, while these whales have been purchasing BTC over the two months, amassing over 220,000 BTC, spot ETF flows have been declining, only scooping up roughly 165,000 BTC during this period. This deviation suggests that investors, including institutions, gaining BTC exposure via spot ETFs cannot account for the entire whale activity.
Bitcoin Buying Pressure Sustained, Will Bulls Break $73,800?
Woo also clarifies that the accumulation over the past two months wasn’t a single, massive purchase. Instead, a clear pattern of sustained buying is observed over 30 days within two months. This makes it evident that their approach was deliberate, and they were eager to strategically accumulate when prices were depressed. The fact that whales are involved and actively buying, based on on-chain activity, is bullish. Bitcoin prices have moved horizontally over the past two months since peaking at $73,800. For the uptrend to remain, there must be a conclusive close above $70,000 and, ideally, $73,800. Analysts predict an eventual spike to $100,000.
Conclusion
The rapid accumulation of Bitcoin by high-net-worth holders, despite the coin’s current trading range, signals a bullish outlook for the cryptocurrency. With sustained buying pressure and the potential for a price spike to $100,000, the future of Bitcoin appears promising.
