Originally published on: October 18, 2024
As Bitcoin approaches the $70,000 mark, whale wallets are stocking up on BTC at a pace reminiscent of the period between July 2020 and January 2021 when Bitcoin surged by an impressive 550%.
Expert author Woominkyu, verified on CryptoQuant, has highlighted this historical trend, sparking optimism among investors anticipating a possible BTC breakout. The current Bitcoin whale ratio on spot exchanges mirrors that of July 2020, following the market crash induced by the pandemic earlier that year.
Despite short-term price fluctuations, whales are showing confidence by continuing to accumulate BTC in preparation for a long-term price surge. Recent reports suggest that whale wallets have amassed over 1.5 million BTC in the past six months, with each wallet holding more than 1,000 BTC, equivalent to $68 million in today’s market.
Ki-Young Ju, CEO of CryptoQuant, pointed out that there is a significant increase in the number of new whale wallets with an average coin age of less than 155 days, reaching a record high of 1.97 million BTC.
While these new whale wallets signal a positive trajectory for Bitcoin’s future, long-term holders and miners could pose some resistance to price movements. Analysts suggest that long-term holders may be looking to stabilize their positions or capitalize on profits, while miners are experiencing greater sustainability in their profits, often linked to peaks in Bitcoin’s price.
On the bright side, short-term holders are transitioning into an accumulation phase, potentially offsetting any selling pressure in the market. With these dynamics at play, Bitcoin appears to be on a steady path towards a significant price shift, much like the rally experienced in 2020.
