$330M bet on Bitcoin: Whale’s massive accumulation explained

$330M bet on Bitcoin: Whale’s massive accumulation explained

Following a recent dip to $66,978, Bitcoin [BTC] has displayed a remarkable upward trend, hitting new all-time highs on five occasions. Surpassing the $99,388 mark, BTC has not only brought increased profits to current holders but has also enticed new investors to join the fray out of a fear of missing out (FOMO).

Despite the usual strategy of whales refraining from accumulating crypto assets during bullish runs, it seems that many major holders have opted to continue accumulating amidst this surge.

A Colossal $330 Million Accumulation by a Bitcoin Whale

According to data from on-chain tracker Lookonchain, whales are actively accumulating BTC. One particular whale has managed to acquire a total of 3577 Bitcoin tokens, valued at $330 million, within the last four days. This consistent accumulation has pushed their total holdings to 25298 tokens, with an overall value of $2.5 billion.

Whale accumulation typically signifies a high level of confidence in the market and an anticipation of further price increases.

The recent optimism among whales is evident from the fact that Bitcoin’s MVRV long/short difference has risen to 21.05% in the past week. This uptrend indicates that long position holders are currently gaining profits and are expecting further price hikes.

Furthermore, the Large Holders Netflow to Exchange Netflow Ratio of Bitcoin has dropped from 3.77% to 0.55% on weekly charts. This significant decline indicates that large holders are increasing their holdings and shifting their BTC away from exchanges.

Moreover, Bitcoin’s Number of Large Transactions has spiked to reach a weekly peak of 32.02k. This surge suggests that major holders are actively participating in the ongoing rally and are playing a pivotal role in the recent price surge.

Thus, it is apparent that these transactions involve purchases and transfers to private wallets, as indicated by the observed netflow ratio.

Consequently, it is evident that the market sentiment is positive, and major holders are displaying a strong bullish outlook.

What does this mean for BTC price trends?

Unsurprisingly, the heightened accumulation and engagement of whales have had a substantial impact on BTC’s price movements.

Indeed, during the accumulation period of the aforementioned whale, Bitcoin has soared from $90407 to nearly $99,000.

Similarly, over the past week, BTC has surged by 12.82%, currently trading at $98,940. This signifies a robust upward momentum for BTC amid amplified whale activity.

 

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