Bitcoin Whales Hold Strong as Prices Hit New Highs

Crypto Exchanges See Record Rate of BTC Withdrawals by Major Bitcoin Investors

Big Bitcoin holders aren’t selling even though the price is at $70,000 – their Bitcoin ownership is growing rapidly.

Bitcoin (BTC) whales are standing firm in the face of the recent rally that pushed Bitcoin to record heights above $70,000, according to the latest on-chain data. Despite the surge in prices, these large holders of Bitcoin are not in a rush to sell, indicating their belief in further price appreciation.

Whale Population Grows Amidst Price Surge

The number of unique addresses holding at least 1,000 Bitcoin, known as whales, has increased to 2,104 addresses as of March 7. While this is a significant rise, it is still lower than the peak of 2,489 addresses reached in February 2021 when Bitcoin was trading above $46,000.

Bitcoin addresses with at least 1,000 BTC. Source: LookIntoBitcoin

The rise in the number of Bitcoin wallets can also be attributed to the growing popularity of the United States spot Bitcoin exchange-traded funds (ETFs), which recently surpassed $52.5 billion in cumulative trading volume as of March 4.

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The fact that whales are holding onto their Bitcoin rather than liquidating their positions at these levels suggests their anticipation of even higher prices. It’s important to note that whales have the ability to significantly impact market prices due to the sheer size of their trades.

Julio Moreno, the head of research at on-chain intelligence firm CryptoQuant, highlighted this growth on March 7, stating, “The growth of whales’ Bitcoin holdings is going parabolic.”

Bitcoin whales holding 1,000–10,000 BTC, 1-year change. Source: Julio Moreno on X

Whales Withdraw From Exchanges at an Unprecedented Rate

Further evidence of Bitcoin whales’ determination to hold onto their assets can be seen in the relationship between whales and crypto exchanges. Glassnode data reveals that transfers from exchanges to whales have reached new record highs this month, demonstrating the continued accumulation of Bitcoin by these big players.

Bitcoin: Number of transfers from exchanges to whales. Source: Glassnode

In contrast, the volume of transfers from whales to exchanges has only seen a modest increase compared to previous bull and bear market cycles. Overall, these metrics indicate a significant influx of new investors into Bitcoin and a lack of profit-taking by wealthy individuals, despite the cryptocurrency’s record-breaking prices.

Transfer volume from whales to exchanges. Source: Glassnode

Bitcoin ETF Drives Market Demand

On a fundamental level, spot Bitcoin ETFs in the United States continue to drive demand for BTC. The BlackRock iShares Bitcoin Trust (IBIT), for instance, recently recorded its highest daily inflows of $788 million on March 5.

Given the current trends, Bitcoin’s next major target could be around $92,500, based on a combination of technical, on-chain, and fundamental indicators. It’s worth noting that Bitcoin’s price charts have recently formed a bullish continuation pattern known as a bull pennant, which adds further support to the positive outlook.

Q&A: Addressing Readers’ Concerns

Q: Are whales the only driving force behind Bitcoin’s price surge?

A: While whales play a significant role in the cryptocurrency market, they are not the sole driving force behind Bitcoin’s price surge. Factors such as increasing adoption, institutional interest, retail demand, and market sentiment also contribute to the overall price dynamics.

Q: Is it wise for individual investors to follow the moves of Bitcoin whales?

A: While it can be insightful to analyze the behavior of whales in the market, individual investors should not solely rely on their actions as an investment strategy. It’s important to conduct thorough research, diversify portfolios, and consider personal financial goals before making any investment decisions.

Q: How can spot Bitcoin ETFs impact Bitcoin’s price?

A: Spot Bitcoin ETFs provide investors with exposure to Bitcoin without having to directly hold the cryptocurrency. These ETFs attract significant investment, which can potentially drive up demand for Bitcoin and subsequently impact its price.

In Conclusion

Bitcoin whales continue to hold onto their assets as prices reach new highs. Their confidence in further price appreciation is reflected in the growing number of unique whale addresses and the record influx of Bitcoin from exchanges to whales. Additionally, the increasing popularity of spot Bitcoin ETFs further contributes to the market demand for Bitcoin. All these factors indicate positive trends for Bitcoin’s future outlook.

It’s essential for investors to stay informed, conduct their own research, and assess their risk tolerance before making any investment decisions. As always, the cryptocurrency market is subject to volatility, and it’s crucial to approach it with caution and a long-term perspective.

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Reference List:

• Bitcoin retail interest returns, pushing BTC spot trading volume to 12-month high
• Bitcoin logs biggest weekly gain since October, S&P 500 tops 5K
• BlackRock iShares Bitcoin Trust (IBIT)
• Bitcoin: New heights above $70,000
• Record high-level BTC prices
• Bitcoin charts recently printed a triangular formation resembling a bull pennant

Note: The images used in this article are for illustrative purposes only and do not represent real-time data.

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