Bitcoin whale accumulation mirrors 2020 trend where BTC rallied 550%
With Bitcoin ( BTC ) price making a run at the $70,000 level, whale wallets are accumulating BTC at a speed which closely resembles July 2020 to January 2021 when Bitcoin rallied by 550%.
According to Woominkyu, a verified author on CryptoQuant, this historical trend has investors excited about a potential BTC breakout. As illustrated in the chart below, the Bitcoin whale ratio on spot exchanges is currently similar to the ratio observed around July 2020 after the COVID-induced crash in March.
Bitcoin exchange whale ratio chart. Source: CryptoQuant
The author indicated that whales continue to accumulate BTC despite short-term price volatility as they are positioning themselves for a long-term price increase. In an X post, Woonminkyu said,
“Whales are ready to welcome "FOMO" by dumb money.”
Previously, Cointelegraph reported that whale wallets had accumulated over 1.5 million BTC over the past six months, and each of these wallets represented more than 1,000 BTC, i.e. $68 million at current value.
New whale wallets represent 9.3% of the total supply
CryptoQuant CEO Ki-Young Ju, indicated that new whale wallets with an average coin age under 155 days have also reached a new high of 1.97 million BTC.
Bitcoin new wallets with 1K+ BTC, aged less than 6 months. Source: X.com
One key difference between these whale wallets and the ones on spot exchanges is that these are non-miner wallets and potentially custodial. Speaking on the net-return of these wallets, Young-Ju mentioned,
“Their BTC balance surged 813% YTD, taking up 9.3% of the total supply, valued at $132B today.”
Related: BTC price gains 'on horizon' as Bitcoin whales buy 1.5M BTC — Analysis
Bitcoin long-term holders may be ‘stabilizing’
Although whale wallets represent a bullish outlook for the future, long-term holders and miners may continue to add a bit of resistance to BTC’s price. IT Tech, an on-chain analyst on CryptoQuant, shared his thoughts and indicated that long-term holders are potentially stabilizing or taking profits.
Bitcoin long-term holder net position change chart. Source: CryptoQuant
Meanwhile, miners’ profit sustainability has increased recently, which means they are integrating payment periods, which often correlates with Bitcoin price peaks.
However, the analyst added that short-term holders are shifting towards accumulation, so the market could absorb any form of selling pressure. The analyst said,
“Monitoring STH, LTH, and miners is crucial. Shifts here can impact BTC’s next move as the market watches for renewed accumulation or profit-taking.”
Related: Early Bitcoin-era whale moves $630K to Kraken, $5.5M in 2 months
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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