Markets
Whale Investments in Bitcoin Hit $100 Billion in 2024, Fueling Insane Investor Optimism ⋆ ZyCrypto
In a notable development, data from analytics firm Cryptoquant reveals that whale investors invested a staggering $100 billion in Bitcoin in the first half of 2024.
This revelation, made Friday by Julio Moreno, head of research at the firm, Underlines a significant trend where wealthy investors are accumulating Bitcoin, likely through over-the-counter (OTC) deals, bypassing conventional exchanges.
Notably, OTC transactions, which facilitate direct transactions between parties, have become a favored way to acquire significant amounts of Bitcoin, with notable entities like MicroStrategy engaging in such transactions to bolster their corporate treasury strategies.
Moreno’s disclosure coincides with observations from Ki Young Ju, the company’s CEO, who drew parallels between the current market dynamics and those of mid-2020 and February 2019, when similar patterns of high activity in chain preceded a remarkable increase in the value of Bitcoin, thus reinforcing the notion. of whale activity as a strong bullish indicator. In particular, this year’s remarkable accumulation could be attributed to the green light given to several spot Bitcoin exchange-traded funds (ETFs) in January, paving the way for traditional investors to jump into investing in crypto assets.
Additionally, data from the same company also indicates an increase in Bitcoin accumulation addresses over the past month, reflecting growing investor interest despite price stability.
“Despite stable prices and relatively modest growth compared to previous months, there has been a notable increase in the number of new participating accumulation addresses. This phenomenon indicates that even though Bitcoin prices are stable, investor sentiment remains optimistic. More and more investors are eager to join the ranks of buyers and invest in Bitcoin,” the company wrote.
At the same time, the price of Bitcoin saw consolidation towards the end of May, partly due to concerns over recent capital outflows. Mount Gox addresses to a new wallet address for distribution. However, assurances from Mt. Gox administrator Nobuaki Kobayashi regarding pending refunds have injected some semblance of stability into the market.
That said, in this context, the crypto community expects a strong recovery in the second half of the year. Analysts such as “Mags” point to historical precedents, suggesting that periods of sideways movements often precede significant price increases.
“[Bitcoin] broke the last monthly resistance in March and has since turned that level into support… Last year, from March to September, the price remained stagnant for seven months before breaking out and surging 178%. Therefore, despite the apparent monotony, this type of sideways movement usually precedes a significant rally. If we see a similar 178% increase out of the current range, we could be looking at $188,000,” Mags wrote.
Elsewhere, “Crypto Caesar” proposed a target of $79,579 for Bitcoin based on an observed inverse head-and-shoulders pattern. According to his analysis, the price has crossed the neck line and he is currently checking it as a support level.
Bitcoin was trading at $67,701 at press time, reflecting a 0.63% decline over the past 24 hours.