- According to IntoTheBlock’s data, addresses holding at least 0.1% of Bitcoin supply (worth over $500 million) added a total of $1.5 billion in the last two weeks of August.
- Surprisingly, these large Bitcoin purchases occurred during a period when BTC’s price experienced a significant drop, reaching the lowest level in two months.
- Despite the price weakness, the increase in Bitcoin holdings by these major investors indicates a growing sense of optimism among institutional players as key ETF decisions approach, according to Outumuro.
While the sharp price drop in Bitcoin may be disappointing for investors, whales in Bitcoin are moving to buy more BTC.
Whales Inclined Towards Accumulating Bitcoin
In recent weeks, large Bitcoin investors, often referred to as “whales” in the crypto world, have shown significant trust in the cryptocurrency and significantly increased their Bitcoin holdings.
According to crypto analytics firm IntoTheBlock’s data, addresses holding at least 0.1% of Bitcoin supply (worth over $500 million) added a total of $1.5 billion in the last two weeks of August.
This significant increase in the amount held by Bitcoin whales occurred during a period when minimal funds were flowing into centralized exchanges. According to Lucas Outumuro, Head of Research at IntoTheBlock, this suggests that the increase in accumulation of Bitcoin is driven by real buying demand rather than just funds being transferred to exchange addresses.
Bitcoin whales are known for controlling significant amounts of the digital asset. Their trading activities can greatly impact the crypto markets, making them a focal point for analysts and crypto enthusiasts seeking insights into potential market movements. Surprisingly, these large Bitcoin purchases occurred during a period when BTC’s price experienced a significant drop, reaching the lowest level in two months.
The temporary price increase in Bitcoin was associated with a critical court decision related to Grayscale’s efforts to launch a spot Bitcoin exchange-traded fund (ETF) in the United States. The major holders of Bitcoin started accumulating more aggressively after BTC fell below $26,000 and experienced a sharp drop of over 10% on August 17. According to IntoTheBlock’s data, this marks the lowest price point for Bitcoin since June.
Institutional Confidence Increasing Ahead of ETF Decision
These whales continued to increase their Bitcoin holdings after a significant legal victory for asset manager Grayscale earlier this week. A federal appeals court ordered the U.S. Securities and Exchange Commission (SEC) to reconsider Grayscale’s request to convert its $14 billion Grayscale Bitcoin Trust into a more suitable spot Bitcoin ETF.
This court decision was seen as a significant step towards listing the first spot Bitcoin ETF in the U.S., potentially making the world’s largest cryptocurrency more accessible to a broader investor base. However, despite giving back all the gains from the initial optimism surrounding the Grayscale decision, Bitcoin’s price dropped below $26,000 on Friday.
Despite the price weakness, the increase in Bitcoin holdings by these major investors indicates a growing sense of optimism among institutional players as key ETF decisions approach, according to Outumuro. This accumulation demonstrates that institutional investors are looking more optimistically at Bitcoin’s potential, especially during a period when decisive ETF decisions are on the horizon. Despite recent price fluctuations, the actions of these influential players continue to highlight Bitcoin’s resilient appeal in the world of digital assets.
