Bitcoin whales are hoarding BTC, spurring a massive price rally amid positive sentiment. On-chain data shows that large holders’ wallets are adding assets as buying pressure mounts for impatient holders. At press time, Bitcoin’s price is $67,844, a massive short-term rally as new institutional and retail money flows into the space.
Bitcoin whales hold more than 3.9 million BTC
Wallets holding large amounts of Bitcoin have been accumulating more coins from smaller holders recently. A new report from on-chain analytics firm CryptoQuant shows that institutional wallets have accumulated 67,000 BTC in 30 days, bringing their total holdings to 3.9 million BTC.
These wallets do not include miners and cryptocurrency exchanges, which are known for their large individual holdings. Coinbase and Bitfinex recorded strong buying pressure, while the largest exchanges by volume, Binance and Bybit, had lower figures. The cryptocurrency exchange and miner movements were popular for shifting sentiment toward a large number of assets.
“This divergence reveals a dynamic where large investors continue to absorb the token, while small investors have been reducing their positions as prices move sideways. This type of action usually leads to the exhaustion of retail selling power, and when market sentiment improves, they will seek to buy back BTC at higher prices.
According to researchers at CryptoQuant, institutional investors have been adding assets and taking new positions, which could lead to a price surge.
BTC price rises
The broader cryptocurrency market has recorded price gains over the past seven days. A major driver has been the trajectory of the market’s leading cryptocurrency. Bitcoin is up 7% this week, continuing its impressive 30-day run while surging above $66,000. This price surge has been likened to the momentum of the first quarter, as prices hit all-time highs following the approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).
Funds are flowing to risk assets due to macroeconomic factors such as lower policy rates around the world due to lower inflation. Traditionally, rate cuts lead to broader growth in Bitcoin and altcoins. The U.S. presidential election is another positive driver for the market as both Donald Trump and Kamala Harris have hinted at friendly crypto regulations. Recently, Trump unveiled his plans for the industry, including his non-fungible tokens and decentralized finance (DeFi) projects.
