Recent data suggests a potential shift in the behavior of major Bitcoin investors, known as "whales," who have historically capitalized on price dips to accumulate BTC. Analytics firm IntoTheBlock highlights a decline in flows from wallets holding over 1,000 BTC, indicating reduced enthusiasm among these large investors.
While whales have traditionally seized opportunities to accumulate Bitcoin during market pullbacks, IntoTheBlock's analysis reveals diminishing spikes in accumulation after each price drop, raising concerns about their appetite for buying the dip.
This trend emerges following significant accumulation earlier this year, particularly during market downturns. However, recent spikes in whale accumulation have been notably smaller than previous ones, prompting questions about their conviction amid Bitcoin's latest halving event and slowing inflows to spot Bitcoin exchange-traded funds (ETFs).
Although Bitcoin is currently trading at $61,402, marking a modest 3% increase over the past week, it has experienced a nearly 10% decline over the last 30 days. Despite a recent 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, the halving event has so far failed to significantly impact BTC's price.
However, historical data shared by Coinbase suggests that Bitcoin typically enters a range-bound phase in the months following a halving before experiencing significant price action. This pattern indicates that Bitcoin may still have room for significant upward movement as the reduced incoming supply begins to affect the market.
Institutional interest in Bitcoin remains notable, with BNP Paribas, the second-largest bank in Europe, gaining exposure to the cryptocurrency via a spot ETF. While the bank's allocation to Bitcoin is relatively small, its involvement signals a significant development in institutional investment strategies.
Despite recent declines in whale accumulation, ongoing institutional interest and historical patterns suggest that Bitcoin's potential for future price appreciation remains intact.
Bitcoinist