The Bitcoin market has been witnessing the activity of large holders who have been actively accumulating Bitcoin for the past two months. Although the price of BTC seems to have dropped recently, there is a different situation. Wallets that hold significant amounts of Bitcoin, known as Bitcoin whales, are mobile. It has raised a total of $3.5 billion since the beginning of April.
Bitcoin whale accumulation amid price volatility
According to Santiment, a market intelligence platform, there is an interesting development. Bitcoin whales are actively accumulating more Bitcoin amid the price drop witnessed in recent months. Since the first week of April, wallets holding 1,000 to 10,000 BTC have been mobile. Accordingly, he collectively bought $3.5 billion worth of cryptocurrencies.
Whale accumulation typically indicates a positive outlook. That’s because these investors tend to have a long-term perspective. They can also predict future price increase. Santiment also highlighted the increase in BTC whale transactions. He shared his latest views highlighting the contrasting reactions to the Blackrock and SEC lawsuits.
What happened to the BTC price increased?
As always, one can only speculate about the reasons for the Bitcoin price rise. However, the world’s largest asset manager BlackRock has an application for a Bitcoin Spot ETF in the US. Therefore, the bullish mood has returned to the market. A Bitcoin Spot ETF is likely to keep institutional investors flowing into the space.
When we look at Kriptokoin.com, the history of the first gold ETF in the USA in 2004 may be an indication of the bullish effect that the approval of a spot ETF can create. The Gold ETF has been instrumental in the institutional adoption of gold. In the eight years after the first ETF, the price of gold has more than quadrupled.
Will there be a similar situation for BTC?
The U.S. Securities and Exchange Commission has 240 days to decide on the application. However, Bitcoin Magazine CEO David Attley made an important statement yesterday. Accordingly, he stated that he believes the BlackRock Bitcoin ETF can be approved shortly.
This news may have had as much of a positive impact on the market as yesterday’s news that Fidelity may soon apply for a Bitcoin Spot ETF along the lines of BlackRock. Therefore, apart from whales, these developments must have also affected the price. On the other hand, high demand in the spot market in Binance is also effective for the increase. Spot buying is in the spotlight as a sign of a sustained rally. So ideally spot buying should continue. Analyst Skew states that in terms of open interest and funding on Binance, many short positions chase the price after long positions were squeezed before.
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