Bitcoin Whales Gather $22 Billion in Digital Assets During Market Slump
Despite a recent downturn in the market, Bitcoin whales have been actively accumulating a considerable amount of the cryptocurrency. Data from on-chain sources has uncovered that more than 404,448 BTC, equivalent to around $22.8 billion, have been moved to long-term holder addresses within the previous month.
Ki Young Ju, the founder and CEO of CryptoQuant, highlighted this noteworthy trend in a recent analysis, suggesting significant behind-the-scenes activities. He pointed out a remarkable surge in the 30-day demand shift for persistent BTC holders, indicating a clear accumulation trend. In July alone, a total of 358,000 BTC were transitioned to long-term holders, with an additional 53,000 BTC originating from global spot ETF inflows.
The unprecedented scale of whale accumulation led Ki Young Ju to speculate that entities like traditional financial institutions, businesses, or even governments could be gearing up for substantial Bitcoin acquisitions by the third quarter of 2024.
While positive signs such as hash rate recovery and diminished selling pressure from long-standing whales are evident, Ki also raised the alarm about potential systemic risks that might trigger forced liquidations. The arrival of significant crypto deposits from entities like Jump Trading, alongside escalating daily deposits on platforms like Binance, has stirred concerns about market stability.
Amid both bullish and bearish indicators, Ki Young Ju maintains a cautious optimism regarding the market’s direction, indicating that the bullish trend could endure based on current observations. Nevertheless, he stressed the importance of vigilant monitoring and readiness to reevaluate if the market fails to exhibit signs of recovery within the next fortnight.
In summation, the cryptocurrency sphere is currently witnessing substantial activity among Bitcoin whales, hinting at a potential shift in market dynamics. Investors are urged to stay abreast of developments and exercise prudence as uncertainties persist in the broader economic landscape.
