Bitcoin has been trading between $60,000 and $70,000, but a new trend has been spotted through on-chain analysis. Willy Woo, an on-chain analyst, highlighted on May 7 a significant development: high-net-worth BTC holders have been rapidly acquiring the coin.
Wealthy Whales Accumulating Bitcoin
Analyzing a chart, the observer noted that whales, entities with holdings ranging from 100 to 1,000 BTC, have been accumulating BTC vigorously in the past couple of months. Woo described their involvement as the most robust buying trend by such whales recently.
However, despite the excitement, some suggest that the sharp increase in BTC accumulation by this group could be linked to spot Bitcoin exchange-traded fund (ETF) issuers. With the approval of the first spot ETFs by the US SEC in January, these issuers like Fidelity, Bitwise, and ProShares now possess over 850,000 BTC.
Contrarily, Woo dismisses this notion, asserting that this uptick is not due to Wall Street players. He clarified that these entities are distinct and identified through forensic techniques.
Moreover, Woo points out that publicly available spot ETF flow data shows a disparity. While these whales have been buying BTC over the period, accumulating over 220,000 BTC based on network activity, spot ETF flows have been decreasing, acquiring only about 165,000 BTC during the same duration.
This inconsistency implies that investors, even institutions, obtaining BTC exposure via spot ETFs do not explain the entire whale activity.
Sustained Bitcoin Buying Pressure: Can Bulls Surpass $73,800?
Further, Woo clarifies that the accumulation over the recent months was not a single large purchase. Instead, a consistent pattern of buying over 30 days within two months was observed. This indicates a deliberate strategy to accumulate when prices were down.
The involvement of whales actively buying based on on-chain behavior is positive. The currency has been moving sideways since prices hit $73,800 a couple of months back.
Earlier this month, Bitcoin prices dropped to as low as $56,500 before gradually recovering. For the upward trend to sustain, a definitive close above $70,000 and preferably $73,800 is needed. Analysts foresee a potential surge to $100,000.
