Bitcoin (BTC) remains under the psychologically significant $90,000 mark, currently priced at $82,346. This represents a 24.3% decline from its peak of over $109,000 reached in January.
In spite of this bearish trend, fresh on-chain data indicates an influx of high-net-worth investors—termed “new whales”—who are actively accumulating BTC, which could have profound implications for the market’s future direction.
As per CryptoQuant analyst onchained, a specific group of Bitcoin holders, each possessing at least 1,000 BTC acquired within the last six months, has been noticeably increasing their holdings.
This accumulation trend, which began in November 2024, has gained considerable momentum in recent weeks, with these new whales gathering over 1 million BTC overall and contributing more than 200,000 BTC just this month.
New Whales Drive Market Accumulation
Onchained’s findings emphasize that this remarkable accumulation pattern reflects robust confidence in Bitcoin’s long-term prospects. The swift rise in new whale holdings indicates that institutional investors or affluent individuals are increasing their Bitcoin investments.
Additional data indicates that a majority of these new holdings are being retained for short periods (under six months), reinforcing the notion that investors recognize value at current levels and are willing to hold onto their assets through market volatility.
Should this accumulation trend persist, it could establish a solid support mechanism for Bitcoin’s price in the forthcoming months. Onchained also proposed that Bitcoin might revisit and potentially surpass its all-time high, suggesting price targets of $150,000 or even $160,000.
Nevertheless, market dynamics, liquidity, and investor sentiment will be essential in determining whether this trend can be sustained.
The Surge of New Bitcoin Whales
“Since November 2024, these wallets have collectively acquired over 1 million BTC… Their accumulation pace has accelerated notably in recent weeks, accumulating more than 200,000 BTC just this month.” – By @0nchained pic.twitter.com/jVsFPjY8WA
Is Bitcoin Demand Weakening?
While the accumulation by whales indicates a strong long-term belief in Bitcoin, another CryptoQuant analyst, BilalHuseynov, has raised potential concerns regarding Bitcoin’s demand momentum.
His analysis reveals that Bitcoin experienced peaks in demand during both March and December 2024, marking the first instance of two demand peaks occurring in close succession. However, following the March peak, a notable decrease in demand has been observed.
BilalHuseynov compared the present trend to previous market cycles, particularly the 2017-2018 phase, when momentum peaks were succeeded by price volatility and a gradual downturn in demand.
Although elements such as market size, trading volume, and liquidity have changed significantly since then, the current trend indicates that Bitcoin’s demand may be tapering off, which could affect price movements in the near term.
Feature image created with DALL-E, Chart from TradingView
