Markets
Whale Investments in Bitcoin Reached $100 Billion in 2024, Fueling Crazy Investor Optimism ⋆ ZyCrypto
In a noteworthy development, data from analytics firm Cryptoquant reveals that whale investors poured a staggering $100 billion into Bitcoin in the first half of 2024.
This revelation, made on Friday by Julio Moreno, the company’s head of research, highlighted a significant trend for wealthy investors to accumulate Bitcoin, likely through over-the-counter (OTC) transactions, circumventing conventional exchanges.
In particular, OTC deals, which facilitate direct transactions between parties, have become the preferred avenue for acquiring significant amounts of Bitcoin, with major entities such as MicroStrategy engaging in such transactions to strengthen their corporate treasury strategies.
Moreno’s disclosure coincides with observations from Ki Young Ju, the company’s CEO, who drew parallels between current market dynamics and those of mid-2020 and February 2019, when similar patterns of high on-chain activity preceded a notable increase in the value of Bitcoin, reinforcing the idea. From whale activity as a strong bullish indicator. In particular, this year’s notable accumulation could be attributed to the green light given to several Bitcoin exchange-traded funds (ETFs) in January, opening up avenues for traditional investors to dabble in cryptocurrency investments.
Furthermore, the same company’s data also indicated a surge in Bitcoin accumulation addresses over the past month, reflecting growing investor interest despite stable prices.
“Despite stable prices and relatively modest growth compared to previous months, there was a notable increase in the number of new participating storage addresses. This phenomenon indicates that even with Bitcoin experiencing price stability, investor sentiment remains bullish. More and more investors are eager to join the ranks of buyers and invest in Bitcoin,” the firm wrote
Meanwhile, Bitcoin price consolidated towards the end of May, partly due to concerns over recent outflows Mount Gox addresses to a new wallet address in preparation for distribution. However, assurances from Mt. Gox trustee Nobuaki Kobayashi regarding pending repayments have injected a semblance of stability into the market.
That said, against this backdrop, the crypto community expects a robust rally in the second half of the year. Analysts like “Mags” point to historical precedent, suggesting that periods of sideways movement often precede significant price increases.
“[Bitcoin] it broke through 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 rising 178%. Therefore, despite the apparent monotony, this type of sideways movement usually precedes a significant rally. If we see a similar 178% increase above the current range, we could see $188,000,” Mags wrote.
Elsewhere, “Crypto Caesar” proposed a $79,579 target for Bitcoin based on an observed inverse head and shoulders pattern. According to his analysis, the price has broken through the neckline and is currently testing it as a support level.
At the time of writing, Bitcoin was trading at $67,701, reflecting a decline of 0.63% over the past 24 hours.