Following a week of minimal price movements, Bitcoin (BTC) saw a 0.50% increase, keeping its value between $51,000 and $52,500. Despite this period of stability, Bitcoin investors have shown consistent high accumulation, as observed by crypto analyst Ali Martinez.
Blockchain data analytics company Santiment has also shed light on this trend. Santiment’s report on February 23 revealed that there were 147 new Bitcoin whale wallets (addresses with 1,000 BTC or more) in the last month, marking a 7.4% rise. Additionally, the firm noted that there was only a marginal decrease of 0.1% in sharks holding between 1-1,000 BTC and a 1.0% drop in retail investors holding less than 1BTC during the same period.
📊 #Bitcoin’s various sized #onchain wallets have seen significant changes in the past month as #ETFs have become more prevalent.
🐳 1K+ $BTC wallets: 147 MORE (7.4% rise)
🦈🐬 1-1K $BTC wallets: 1,237 LESS (0.1% drop)
🐟 <1 $BTC wallets: 509K LESS (1.0% drop)https://t.co/figQmv3vCh— Santiment (@santimentfeed) February 23, 2024
The Reasons Behind Bitcoin’s High Accumulation Levels
These metrics indicate a strong investor confidence in Bitcoin. A key factor driving this optimism is the continuous growth in the Bitcoin ETF market, highlighted in Santiment’s report. BitMEX Research noted that Bitcoin spot ETFs experienced negative daily flow only once in the last four weeks.
This institutional interest is significant as many analysts predict that the development of Bitcoin spot ETFs could lead to a surge in demand for the digital asset, possibly propelling prices up to $150,000.
Moreover, the highly anticipated Bitcoin halving event is another factor that could be driving the active participation of large Bitcoin holders. The halving event typically leads to increased demand due to the reduction in Bitcoin supply caused by the block reward reduction.
Historically, the halving event precedes a bull cycle by several months, during which Bitcoin’s value could potentially increase by over 8-10 times its current value, prompting investors to position themselves to capitalize on expected profits.
Bitcoin Price Summary
Currently, BTC is trading at $51,585, showing a 1.54% gain in the last day. Over the past month, Bitcoin has displayed a significant recovery, rising by 28.96%. However, it remains 25.06% below its all-time high of $68,789.63.
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