2024-02-17 14:43:35
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Amid the current bullish phase for the crypto market, interesting trends are emerging: While Bitcoin whales continue to increase their holdings, there is a decline in investments from small investors. Such a development raises the question of how high the pre-halving rally can push the Bitcoin price.
Bitcoin whales are accumulating more and more coins
According to analysis by Santiment, Bitcoin addresses holding between 1,000 and 10,000 coins have played a significant role in the recent price increase. While Bitcoin’s recent rise to $52,000 has been attributed in many circles solely to institutional investor demand for the new Bitcoin spot ETFs, a recent post from Santiment shows that the whales holding 1,000 to 10,000 BTC are in 2024 have accumulated a total of $12.85 billion. In contrast, the group holding 100 to 1,000 BTC dumped $7.89 billion over the same period.
Independent from the impressive volume happening with #Bitcoin #ETF‘s, there has been a distinct flip in the level of $BTC‘s supply being held by different sized wallets:
1K-10K $BTC wallets: $12.95B added in 2024
100-1K $BTC wallets: $7.89B dropped in 2024(Cont) pic.twitter.com/BL7Mrj6kLq
— Santiment (@santimentfeed) February 16, 2024
Interestingly, these whales are not necessarily institutional investors. Santiment highlights that the last five days have seen the highest number of transactions valued at over $100,000 since June 2022. If this accumulation of BTC by whales continues in its current form and the demand for ETFs increases in parallel, a price increase above $52,000 could be expected. A jump towards $55,000 seems a realistic possibility under these circumstances.
Retail investors are retreating further and further
Nevertheless, retail investor participation remains at a low level, in contrast to the increasing interest from whales. It appears that BTC’s price increase this week is largely due to the commitment of institutions that have purchased large quantities.
Renowned crypto analyst Ali Martinez has highlighted a correlation between the rising price of Bitcoin and a decline in the daily creation of new Bitcoin addresses. Martinez points out that this indicates a decline in retail investor participation during the ongoing Bitcoin rally.
As the price of #Bitcoin increases, there’s a noticeable decline in the creation of new $BTC addresses daily.
This trend points towards a lack of retail participation in the current #BTC bull rally, suggesting that the recent price action is primarily fueled by institutional… pic.twitter.com/DVVfcQ20bG
— Ali (@ali_charts) February 16, 2024
The fact that the current uptrend in Bitcoin price is driven primarily by institutional demand signals a significant shift away from retail investor dominance towards market-determining influence from institutional players.
This is what these developments mean for Bitcoin’s price
Recent developments surrounding the accumulation of Bitcoin by whales and the decline in retail investor participation raise questions about what impact these trends could have on the price of Bitcoin. Currently, an analysis of the 4-hour chart shows that the week-long rally appears to have stalled. The price is currently at $51,750 and has already failed several times to overcome the $52,000 mark. If BTC can hold near $52,000, this would increase the chance of the coin breaking through the resistance.
What: CoinMarketCap
The Relative Strength Index is currently back below 60. The decline from the initial overbought level suggests that buyers may be exhausted. If this is true, Bitcoin could fall back to the support at $50,000.
Given increased accumulation by whales and decreasing participation from retail investors, Bitcoin price could experience a period of consolidation or slight correction before potentially finding new momentum to move higher. But the whales’ focus is currently not just on Bitcoin. Newer crypto projects such as Meme Kombat are also increasingly coming into focus.
Whales are currently also investing in alternative crypto projects such as Meme Kombat
Just recently, whale interest in Meme Kombat was highlighted by a significant investment: a wallet address made a notable $83,000 purchase in the $MK token. With a clear focus on merging crypto gaming, memes and the potential for passive income through staking, Meme Kombat positions itself as an innovative investment opportunity for whales and retail investors.
The integration of leading meme characters into a battle arena where players can bet on the results of duels offers a novel and appealing play-to-earn concept. Additionally, investors can stake their earned $MK coins for an annual return of over 100 percent. Interested investors are currently being offered very good entry conditions. You can invest just like crypto whales at a discounted price of just $0.279 in the PreSale. However, this low price will increase in the next pre-sale phase.
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