Large Bitcoin investors, commonly referred to as „whales,“ are refusing to cash out their holdings despite the cryptocurrency’s recent record-breaking rally that pushed prices beyond $70,000. This behavior suggests that these major players expect even more substantial gains in the future.
Rise in Whale Wallets Despite Lower Peak than 2021
The number of wallet addresses holding at least 1,000 BTC, the criteria for whale status, climbed to 2,104 on March 7th. However, this figure is lower than the 2,489 whale addresses recorded in February 2021 when Bitcoin was trading just above $46,000.
Whales Accumulating, Not Selling
The fact that whales are not selling even at record prices implies they anticipate further price appreciation. Their assessment carries significant weight, as their substantial Bitcoin holdings can directly influence market movements.
Julio Moreno, chief analyst at CryptoQuant, highlighted this development on March 7th, noting that whales are withdrawing their Bitcoin from exchanges rather than selling.
Declining Exchange Inflows from Whales
Data from Glassnode confirms this passive strategy, showing that transactions from exchanges to whale wallets have become „parabolic,“ while transactions from whales to exchanges have only slightly increased compared to previous cycles.
This suggests that new investors are entering the Bitcoin market, while major investors are holding on to their positions despite the record highs.
Bitcoin ETF Popularity Continues
The driving force behind Bitcoin’s rapid price surge is the newly approved Bitcoin ETFs. The iShares Bitcoin Trust (IBIT) from BlackRock alone saw daily inflows of $788 million on March 5th.
As reported by Bitnews Today, the Bitcoin price could potentially reach over $90,000 next, as a combination of factors is creating optimal conditions for another upward leap. This optimistic outlook is fueled by the growing adoption of Bitcoin by institutional investors, increasing regulatory clarity, and the overall bullish sentiment in the cryptocurrency market. As the landscape of digital assets continues to evolve, Bitcoin remains at the forefront of this financial revolution, promising exciting opportunities for investors and enthusiasts alike.