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Bitcoin Whales Defy Market Downturn: 46 Investors Accumulate Over 1,000 BTC Each in Two Weeks

Last Updated January 25, 2024 2:59 PM
Teuta Franjkovic
Last Updated January 25, 2024 2:59 PM

Key Takeaways

  • Bitcoin whales are accumulating BTC amidst market volatility.
  • The BlackRock iShares spot Bitcoin exchange-traded fund (IBIT) has seen a surge in inflows.
  • Bitfinex whales are adjusting their strategies to navigate market fluctuations.

Since the approval of the spot Bitcoin ETF earlier this month, Bitcoin has experienced significant selling pressure, resulting in a 20% price drop.

Consequently, the BTC price plummeted to $39,000 earlier this week. Despite ongoing selling pressure, Bitcoin whales have been actively purchasing during these dips.

Bitcoin Whales Unfazed by Volatility, Continue Buying

In the current market correction, crypto analyst Ali Martinez has observed  a notable trend: Bitcoin whales are undeterred by the volatility and are actively increasing their BTC holdings.

Martinez’s analysis reveals a significant development in the crypto sphere, with an influx of 46 new entities, each holding over 1,000 BTC. This marks a 3% rise in the number of major Bitcoin holders in just two weeks, highlighting the resilience and strategic actions of these whales amidst market uncertainties.

Bitcoin: Number of Entities With balance
Credit: Glassnode

BlackRock’s IBIT ETF Sees $42 Billion Inflows

The BlackRock iShares spot Bitcoin exchange-traded fund (IBIT) has experienced a remarkable influx of nearly $42 billion since its launch, as reported  by Rachel Aguirre, Head of iShares Products for BlackRock in the U.S.

The IBIT ETF witnessed a significant increase  in trading volume within its first two weeks, hitting $3 billion and demonstrating its strong impact on the market. This surge in inflows reflects a growing interest among investors in cryptocurrency-related investment products, potentially laying a foundation for a long-term BTC price rally.

Adding to this, Martinez has analyzed historical Bitcoin trends, suggesting that if current market trends follow past patterns seen from 2015-2018 and 2018-2022, the next Bitcoin market peak could potentially occur around October 2025

Bitcoin trends
Credit: Glassnode

Martinez’s compelling forecast suggests that BTC could experience around 600 days of bullish momentum ahead, based on his analysis.

Bitfinex Whales Adjusting Strategies Amid Bitcoin’s Price Fluctuations

Recent analysis from Datamish  has shed light on the intriguing behavior of Bitfinex whales, particularly their ongoing pattern of closing long positions. A notable decrease of 3,500 BTC in early December brought the total to 76,500 BTC.

Despite Bitcoin’s rollercoaster ride, reaching a high of $49,000 and then dropping below $39,000, significant shifts have been observed. On January 14, long positions hit a low at approximately 68,000 BTC, but soon saw a revival with an increase of about 6,000 BTC, raising the total to over 74,000 BTC by January 25.

Bitfinex whales
Credit: Datamish

Alistair Milne highlighted  the whales’ strategic approach on January 23. They have been implementing a time-weighted average price (TWAP) strategy, involving the purchase of 10 Bitcoins on margin every 15 minutes.

This method, commonly used in financial markets, aims to reduce the market impact of large orders by distributing a big order into smaller ones over time.

TWAP
Credit: TradingView

These strategic maneuvers suggest a deliberate strategy employed by Bitfinex whales, which may have an impact on the movements of the Bitcoin market.

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