Rumors are swirling in the digital currency market that Bitcoin (BTC) is poised to reach unprecedented highs in the last quarter of the year. With a recent surge of over 10% and breaching the $66K barrier, confidence is on the rise.
Despite this positive momentum, there are lingering concerns regarding the impact of perpetual traders on market stability.
However, a new revelation by CryptoCrypto has unveiled a hidden trend that could potentially shield Bitcoin from abrupt price fluctuations caused by short-sellers.
Accumulation of Bitcoin Whales
The accumulation of 2 million BTC, amounting to $132 billion, in new whale wallets has caught the attention of the market. These wallets each hold more than 1K BTC, with an average age of under 155 days, marking an impressive 813% surge year-to-date.
This accumulation now represents 9.3% of Bitcoin’s total supply, indicating substantial institutional-level investment through self-custodial platforms.
It is noteworthy that this accumulation excludes wallets of miners and exchanges, emphasizing the growth of individual wallets transitioning into Bitcoin whale status.
Notably, as BTC nears a critical psychological threshold, the heightened buying activity by Bitcoin whales may signify the current price level as a potential market floor.
Furthermore, this whale accumulation works to counterbalance pressure from the derivatives market, where short positions often outweigh long positions, acting as a significant hurdle for Bitcoin price peaks.
Does this collective hoarding by Bitcoin whales suggest an imminent ATH for BTC, or is it indicative of an overheated market?
Smart Traders Seize Buying Opportunity
In addition to the surge in Bitcoin whale activity, there has been a noticeable uptick in BTC demand from Smart Traders (STHs) in the past 18 days.
This rise in demand is crucial as STHs typically sell off their holdings during market tops, creating resistance as they cash in on profits.
Yet, the current surge in demand from both STHs and Bitcoin whales implies their perception of the current price as a buying opportunity to potentially reap substantial gains.
As a result, market signals hint at the possibility of BTC embarking on a parabolic upswing, potentially culminating in a new ATH before the current cycle concludes.
The surge in Bitcoin whale numbers adds weight to this forecast and could help mitigate the market turbulence caused by speculative traders. Ultimately, this trend underscores the maturation of the market, signaling that investors now view Bitcoin as a more stable investment rather than a purely speculative venture.