In an unexpected turn of events, Bitcoin has surged in price over the past week, aiming to reclaim the $50,000 milestone. This resurgence comes after a brief dip below $40,000 following the approval of spot ETF trading in the United States. Recent on-chain data sheds light on behind-the-scenes activities, revealing significant accumulation by a specific class of investors: whales.
Whales accumulate Bitcoin amidst price surge
In a post on the X platform, Crypto analyst Ali Martinez disclosed that whales holding between 1,000 and 10,000 BTC have been actively accumulating in recent weeks. Data from on-chain analytics firm Santiment indicates that these whales have added over 140,000 coins to their holdings in the last three weeks, amounting to approximately $6.16 billion.
This accumulation surge brings this whale class’s total Bitcoin holdings to 4.84 million BTC. Such substantial acquisitions often signal strong confidence and belief in Bitcoin’s prospects.
The timing of this whale buying spree aligns with a period of heightened interest from institutional investors. Reports indicate that new Bitcoin spot ETF issuers have collectively amassed over 200,000 BTC in assets under management.
This convergence of increased whale activity and institutional involvement paints a bullish picture for Bitcoin, fueling optimism among investors regarding the cryptocurrency’s potential to reach the coveted $50,000 mark.
Bitcoin trading volume surges
In addition to the surge in whale accumulation and institutional interest, Bitcoin has experienced a notable increase in trading volume. Santiment reports that Bitcoin hit a four-week high in trading volume over the past week, with a single-day trading volume reaching $39.31 billion.
This heightened trading activity has been attributed to the recent price surge witnessed in Bitcoin. Meanwhile, trading volumes for other high-cap cryptocurrencies have remained relatively subdued, with Ethereum being a notable exception due to its significant price surge.