After setting a price record in mid-March, Bitcoin entered a prolonged consolidation phase. During this period, the combined balance of crypto exchanges decreased by 5% to 2.85 million BTC. This decrease is mainly due to the transfer of Bitcoin to cold wallets, which demonstrates a high level of expectation for further Bitcoin growth.
Young whales have shown significant activity in accumulation, adding $1 billion to their wallets daily. The head of the analytical firm CryptoQuant, Ki Young Ju, notes a strong similarity in their behavior to 2020. At that time, consolidation lasted about six months around $10,000, after which the price increased 2.5 times in three months. Key representatives of young whales include large institutional investors from the United States. According to 13F filings, it became known that a third of all capital inflows into spot ETFs in the first quarter (specifically $4 billion) were provided by companies with assets under management exceeding $100 million.
The volume of American ETFs continues to grow and now stands at $14.1 billion. Moreover, major players are just getting a taste of it. For example, Marquette University finance professor David Krause believes that the Wisconsin State Investment Board (AUM: $156 billion) is currently evaluating public opinion after purchasing $150 million worth of BlackRock and Fidelity fund shares in the first quarter. In case of a positive response, Krause is confident that cryptocurrency investments will increase, and other pension funds will follow the Investment Board's example.
Interest in cryptocurrency from institutional capital and the resumption of Bitcoin outflows to cold wallets create favorable conditions for further Bitcoin growth. The next event that could become a catalyst is the review of Franklin Templeton's application for a spot ETH ETF. The final decision date is June 11.
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