Bitcoin has demonstrated notable activity recently, particularly among large investors and institutional players. These two groups are widely believed to exert significant influence on the price movements of Bitcoin.
Over the past six weeks, Bitcoin has maintained a strong upward trend after facing challenges in sustaining levels above $60,000. The current rally has been relatively smooth, largely attributed to increased participation from institutional investors.
The changing perceptions surrounding Bitcoin have enhanced its attractiveness, evident in the rising number of institutions holding the digital asset. Recent data from Glassnode indicated that entities possessing more than 1,000 BTC surpassed levels seen in May 2022.
Previously, this category of Bitcoin holders experienced a notable decline before stabilizing around May last year. The subsequent accumulation has been quite aggressive, although the momentum has slowed between May and August.
Surge in Bitcoin Whale Holdings to Record Levels
There seems to have been a resurgence in the pace of upward movement since September, reflected in the heightened activity of Bitcoin whales.
Reports suggest that Bitcoin whales now hold over 670,000 BTC, marking a historical high for this category. Analyst BaroVirtual from CryptoQuant described this trend as indicative of accumulation preceding a major market shift.
2023 marked a turning point in Bitcoin whale holdings, with continued accumulation surpassing the highs of 2021 recently.
Both institutional and whale activities have witnessed rapid growth in the past two months, leading to increased Bitcoin transactions and network congestion.
In response to heightened network activity, Bitcoin miners have scaled up their operations, propelling the hash rate to a new peak of 918.72 TH/s.
This milestone was achieved on Monday, 21st October of this week, with the record hash rate signaling robust miner profitability.
Furthermore, the impact of heightened Bitcoin demand has been reflected in its price movements. Since March, Bitcoin has been following a bullish flag pattern.
The recent bullish momentum helped Bitcoin break above the resistance range, hinting at potential further upside in the approaching months.
The significant accumulation by whales and institutions may foreshadow substantial market movements. Nevertheless, these trends also suggest the likelihood of increased volatility for Bitcoin in the near to medium term.