Bitcoin: Whales remain bullish despite pullback



  • The number of wallets holding between 1K and 10k coins jumped sharply.
  • More than 60% of the whale accounts on Binance were long on Bitcoin.

Bitcoin [BTC] has retreated sharply since the spot ETF approvals, dampening the high spirits of the market participants.

However, seasoned investors, who did their due homework on the king coin’s expected medium to long-term pricing, continued to accumulate the asset in large quantities.

Whales on an accumulation spree

As per CryptoQuant, a sharp spike in the number of wallets holding between 1K and 10k Bitcoins was observed throughout January. This is despite the price crashing 12% since the peak on the ETF approval day.

Source: CryptoQuant

A separate set of data from IntoTheBlock revealed that whale investors have increased their BTC holdings by 76,000 since the beginning of the year, worth more than $3 billion at prevailing market prices.

Whales

Source: IntoTheBlock

Optimism for the future

“Buying the dip” as it’s commonly called, is one of the most popular mantras in investment circles.

In this, investors buy assets when the price has declined, with the expectation that the price will increase in the future.

As AMBCrypto previously reported, most market analysts expect significant capital inflows into the Bitcoin market following spot ETFs approval.

In fact, one research predicted that the king coin would reach $100,000 by the end of the year, and close to $200,000 by the end of 2025.

These positive forecasts might be prompting experienced investors to ignore the short-term blip and pack their bags for the eventual super cycle.

Another interesting metric that reflected whales’ bullishness on Bitcoin was the number of long positions taken by them.

According to AMBCrypto’s analysis of Hyblock Capital data, more than 60% of the whale accounts on Binance were long on the king coin at press time.

The long exposure increased sharply since the spot ETFs got approved, lending strength to the arguments made earlier in the article.

BTCUSDT 2024 01 28 14 05 35

Source: Hyblock Capital

Grayscale outflows continue

Meanwhile, Bitcoins continued to exit Grayscale Bitcoin Trust ETF (GBTC), with net outflows of $255 million on Friday, as per AMBCrypto’s reading of SoSo Value data.


Read Bitcoin’s [BTC] Price Prediction 2024-25


Other ETFs except Grayscale recorded net inflows of $269 million.

Since the listing, spot ETFs have accumulated $756 million as of the 26th of January, severely dragged down by more than $5 billion of outflows from GBTC.



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