Bitcoin [BTC] has demonstrated significant resilience in the past day, witnessing an increase from a low of $96,463 to regain the $100k mark.
The current market momentum has triggered discussions among analysts and major stakeholders on the driving forces behind this surge. Notably, renowned crypto analyst Ali Martinez suggests that the recent bullish movement of BTC could be attributed to whale activities.
Accumulation of 20,000 Bitcoin tokens by Big Bitcoin Players
According to Martinez’s analysis, whale accumulation of BTC has seen an exponential rise recently. The big players acquired 20,000 BTC tokens valued at $2 billion within the last 24 hours alone.
When whales engage in accumulation, it signifies the confidence of institutional and major stakeholders in the market’s future. Often, a significant whale accumulation is a precursor to price surges.
Historically, substantial whale transactions have played a crucial role in driving BTC’s price up. For instance, following the market crash due to Covid in March 2020, there was a massive increase in whale accumulation which resulted in a 550% surge in BTC’s value from July to January 2021.
A similar pattern was observed on March 25, 2024, when whale accumulation peaked at 50.1k as reported by CryptoQuant. This led to BTC’s price jumping from $63k to $72k.
Impact on Bitcoin Price Trends
The trend of accumulation has resurfaced in the last day. For example, the netflows of significant Bitcoin holders surged by 1453.8% from 1.84k to 28.57k. This indicates a higher rate of capital inflow from whales compared to outflows.
Moreover, there has been a noticeable increase in outflow volume as more investors are withdrawing their tokens from exchanges. This trend suggests that both whales and retail traders are actively holding onto their assets in anticipation of further price gains.
Based on historical patterns, BTC’s price tends to rise when whales accumulate, creating buying pressure and contributing to a supply shortage.
The recent surge in Bitcoin’s price to above $100k within the last 24 hours is in line with expectations, given the robust whale accumulation activity.
With strong momentum in whale accumulation, Bitcoin appears poised for further growth. Past data shows that increased cash inflows have a significant impact on BTC price movements.
If these trends persist, BTC is likely to surpass $103,600 and move towards setting a new record high.