After a sharp decline in Bitcoin’s price earlier this week, large-scale investors, known as “Bitcoin whales,” have started accumulating again, signaling a potential price rebound. With recent market corrections now stabilizing, many analysts believe that continued whale activity could spark a rally in the coming days.
Bitcoin Whales Take Advantage of Market Correction
Data from CryptoQuant reveals that Bitcoin whales have accumulated over 30,000 BTC in the past 30 days. This surge in on-chain buying activity follows what is being described as the biggest selloff of 2024, triggered by stronger-than-expected U.S. macroeconomic data, including the jobs report and ISM Services PMI. Despite these figures pointing to no imminent interest rate cuts from the Federal Reserve, traders remained cautious, leading to a price dip.
Bitcoin traded between $92,525 and $97,258 earlier today, with whales reportedly buying at levels just below $95,000. According to CryptoQuant analyst Cauê Oliveira, institutional investors were largely responsible for the selling pressure, offloading around 79,000 BTC in a week, which led to a 15% market correction. However, whales have now stepped in to accumulate, taking advantage of the price dip by opening “TWAP positions” over the past month.
Institutional Investors Drive the Recovery
Institutional interest in Bitcoin remains strong, with whales primarily responsible for recent market buying pressure. Over the past month, more than 30,000 BTC have been purchased, with major buyers such as MicroStrategy and Riot Platforms leading the charge. MicroStrategy, for instance, made significant BTC purchases in 2024, acquiring $22 billion worth, resulting in a 74.3% yield on its investments.
CryptoQuant’s analysis also notes that retail demand for Bitcoin is at its lowest in five years, further highlighting the importance of institutional players in the ongoing recovery. Should this trend continue, it is expected that Bitcoin could reach new highs in the mid-term.
The Growing Influence of Nation States
While institutional investors, or Bitcoin whales, were pivotal in driving the cryptocurrency to an all-time high of $108,000, some experts predict that nation states may soon become a key force in the market. As President-elect Donald Trump’s inauguration approaches, discussions about a U.S. strategic Bitcoin reserve have gained momentum. If the U.S. follows through on plans to establish such a reserve, other nations may likely follow suit, creating a ripple effect that could have a profound impact on Bitcoin’s price in the long run.
Bitcoin’s Long-Term Potential
With Bitcoin whales continuing to accumulate and institutional investors leading the charge, many are optimistic about the potential for a price rebound. Should the trend of nation-state involvement materialize, the long-term outlook for Bitcoin could be even more bullish. Investors are closely watching for any signs of further buying pressure, as any significant moves from whales or institutional players could trigger a fresh rally.
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