Bitcoin Whale Warning: BTC Appetites Decline as Accumulation Fades, Data Finds
Major cryptocurrency whales are continuing to purchase the recent Bitcoin (BTC) price dip, but a recent report suggests that their belief in the crypto market’s ongoing bull run may be diminishing.
According to data from analytics firm IntoTheBlock, there appears to be a potential shift in the behavior of major Bitcoin investors, commonly referred to as “whales,” who have historically been quick to take advantage of price dips by accumulating BTC during periods of weakness.
The analysis from IntoTheBlock raises concerns about a waning enthusiasm among these large investors, as the data indicates a decrease in flows from wallets holding over 1,000 BTC – a metric that tracks the movement of Bitcoin in and out of these whale wallets.
This decline comes after a period of significant accumulation earlier this year, particularly during market pullbacks. IntoTheBlock highlights that while there is still a spike in whale accumulation after each price drop, each of these spikes “is smaller than the last.”
The firm’s analysis raises questions about whether whales have a decreased appetite for buying the dip, especially after the latest halving event failed to substantially boost the price and as inflows to spot Bitcoin exchange-traded funds (ETFs) begin to slow.
Currently, Bitcoin is trading at $62,600 after a 3% increase over the past week. However, it has experienced a nearly 10% loss in the last 30 days, following a bull run that propelled its price to a new all-time high of around $73,500 after the launch of spot ETFs in the US.
While the halving has yet to significantly impact BTC’s price, Coinbase stated on the microblogging platform X that historical data suggests the price of Bitcoin remains range bound for the first few months after the halving before experiencing significant price action.
The data indicates that Bitcoin is currently following its historical patterns and could still experience considerable upward movement in the near future as the reduced incoming supply begins to affect the market.
BNP Paribas, the second-largest bank in Europe with over $600 billion in assets under management, has recently gained exposure to Bitcoin through a spot exchange-traded fund, according to previous reports. This marks a turning point, as large institutional investors managing over $100 million in assets are required to disclose their holdings every quarter via 13F filings. These filings have been closely monitored following the successful launch of spot Bitcoin ETFs in the US.
While previous filings for the first quarter of 2024 revealed purchases by asset managers, family offices, and several smaller banks, BNP Paribas’ involvement signifies a significant development, despite the bank allocating only a fraction of its holdings to the flagship cryptocurrency, with an acquisition worth approximately $40,000.
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