Emily Walker
The interest in Bitcoin, the leading cryptocurrency, remains high among investors, driven by favorable market conditions and macroeconomic factors. This strong interest is a positive indicator of BTC’s long-term potential and often precedes price increases over time.
Large Investors Persistently Boost Bitcoin Demand
Ongoing bullish behavior from major Bitcoin investors is evident amid changing political landscapes. Santiment, a prominent data analysis platform, reported that both whales and sharks are actively amassing BTC at a significant pace, reflecting increased optimism and demand in the market.
According to Santiment, an average of more than 1,002 coins per day has been accumulated by addresses holding over 10 BTC in the past five days. This accumulation has come at a time when discussions around Donald Trump’s inauguration could lead to a sell-the-news scenario within the community.
The growing influence of wallet addresses with 10 or more BTC has markedly shifted market trends. Santiment also identified five key cycles where activities of Bitcoin whales and sharks have affected market movements over the last six months.
From July 20 to October 11, 2024, an average of about 164 BTC was acquired daily, resulting in a 7.3% price drop. Conversely, between October 11 and November 5, over 884 BTC were bought daily by large investors, driving a price increase of 9.8%.
Further, from November 5 to December 26, daily accumulation surged to 2,060 BTC, leading to a price increase of more than 35.8%. Subsequently, from December 26 to January 15, 2025, an average of 156 BTC daily acquisitions resulted in a 6.2% price rise.
Since January 15, daily accumulations have returned to 1,002 BTC, hinting at the potential for significant price gains. Since this trend began, BTC has appreciated by 2.8%, a sign suggesting that significant market players are actively trying to positively influence prices by adding at least 1,000 BTC each day.
Could This Trend Spark A BTC Rally?
When large investors accumulate BTC in significant quantities, it may indicate that a price rally is anticipated. However, if their accumulation slows down or if wallets hold less BTC over extended periods, it may suggest volatility ahead, possibly leading to a correction phase due to insufficient large wallet support.
The sustained interest from big investors likely plays a crucial role in shaping BTC’s price movements in the near future. With Bitcoin recently achieving a new all-time high, the potential for continued growth appears strong.
According to Santiment, monitoring this accumulation behavior is essential and can aid investors in making more informed decisions within the cryptocurrency landscape, particularly during the current market cycle.