Bitcoin attracts whales, but a big hurdle lies ahead
Journalist
Posted:
- Whales have utilized the dips in Bitcoin’s price to add to their stashes.
- Bitcoin was in danger of a big pullback as of this writing.
The launch of spot Bitcoin [BTC] ETFs has caught the eye of institutional investors from the traditional market.
Previously intimidated by crypto wallets and private keys, this cohort can easily trade Bitcoins on an exchange now, just like any other asset.
According to on-chain analytics firm IntoTheBlock, whale investors have been on an accumulation spree since the start of 2024.
Unfazed by pullbacks and a slightly longer bearish phase after the ETF approval, these influential market players have shown confidence in Bitcoin’s long-term potential.
Source: IntoTheBlock
IntoTheBlock stated that the trend would continue as more hedge funds and financial advisors were likely to scoop Bitcoins in the upcoming quarter.
Whales ignore fluctuations
AMBCrypto examined Santiment’s whale transactions data since the start of the year and spotted some interesting trends.
As evident, Bitcoin corrected sharply after the ETF approvals, casting doubts in the minds of many novice investors. However, whales sprung into action, utilizing the dip to add to their stashes.
Notice how whale transactions spiked when BTC fell to $41K on the 18th of January.
Source: Santiment
AMBCrypto previously reported that most market analysts expect Bitcoin to pump significantly in the medium to long-term because of the spot ETFs’ impact.
This coupled with Bitcoin’s upcoming halving might have motivated whales to be bullish on the king coin, leading to increased buying.
Another evidence of whales’ bullish sentiment was reflected in the long positions taken by them.
According to AMBCypto’s analysis of Hyblock Capital data, around 57% of all whale positions on Binance [BNB] were long as of this writing.
Big correction on the cards?
Bitcoin was exchanging hands at $51.6K at press time, up more than 7% in the last week, according to CoinMarketCap.
Source: Hyblock Capital
Read Bitcoin’s [BTC] Price Prediction 2024-25
However, prominent crypto market analyst Ali Martinez sounded an alarm bell amidst the optimistic mood.
He noted that the king coin might correct significantly, potentially dropping between $48K and $46.5k if it doesn’t quickly reclaim $52K.
