Whales aggressively fill their Bitcoin bag this year, boosting their holdings by approximately 76,000 bitcoins.
Bitcoin has become a hot commodity following the titanic success of the spot ETFs. Demand for the reigning crypto king is showing no signs of slowing down, even in the face of major pullbacks.
Amid this frenzy, January unfolds as an exciting month for Whales as they gobble up bitcoins in massive quantities, leaving crumbs for smaller wallets.
Bitcoin Whales Accumulate
Bitcoin Whales have been on a massive shopping spree since the beginning of this year. According to data analytics firm IntotheBlock, wallets holding at least 1,000 bitcoins have boosted their holdings by $3 billion or approximately 76,000 bitcoins.
At the time of writing, Whales collectively held a staggering 7.8 million bitcoins, boasting a cumulative value of approximately $294 billion.
Demand from these larger wallets has been rising since the start of the year, even in the wake of Bitcoin’s 21% crash from its recent peak at $49,000. Following its dip to $38,500, Whales snagged up 10,000 bitcoins, amounting to over $421 million, leading to the asset recovering by 10%.
At press time, Bitcoin exchanged hands at $42,195 with a trading volume exceeding $17 billion.
Alongside whales, institutions have also been filling up their bags, particularly Bitcoin Spot ETF issuers. Industry giants BlackRock and Fidelity have amassed nearly $4 billion worth of Bitcoin, or 94,000 bitcoins, in the first two weeks of its ETF trading.
However, while Whales and institutions add to their bags, smaller wallets have been disappearing.
Smaller Bitcoin Wallets Decline
Since the beginning of this year, Bitcoin wallets holding under one bitcoin have rapidly declined. Data analytics firm Sentiment reports a decrease of 0.94% in these wallets, suggesting market participants are exiting their positions or have been liquidated in the recent crash.
However, extrapolating historical trends, Santiment indicates that a price surge could be in the books. According to the data analytics firm, the decline in smaller wallets is a sign of capitulation, which can lead to a potential price bounce in the following weeks.