23 February, 2024

Bitcoin’s Price Rebounds as Whale Wallets Accumulate, Showing Market Optimism

2 weeks ago

10 Feb, 2024

  • Bitcoin’s recovery to over $44,500 is seen as a rebound from the slump following the initial excitement over ETF approvals.
  • Large investors holding 1,000 BTC or more now possess over 40% of the total supply, highlighting a growing concentration of wealth.
  • Recent analysis points to a strong support zone for Bitcoin between $41,800 and $43,080, bolstered by substantial buying activity.

Bitcoin has recently witnessed a notable resurgence, climbing above the $44,500 threshold for the first time since the downturn that followed the buzz around ETF approvals in mid-January. This upturn has been partially attributed to the increasing number of wallets holding over 1,000 bitcoins, a segment of investors often referred to as “whales.” These whales have significantly increased their holdings, reaching the highest concentration in over 14 months.

Specifically, wallets with a balance of at least 1,000 BTC now control 40.16% of the total Bitcoin supply, adding 1.03% to their holdings within four weeks. This accumulation phase coincides with Bitcoin achieving its highest valuation in nearly a month, signaling a robust vote of confidence from large-scale investors following the SEC’s ETF approval.

Adding to the narrative, Ali, a cryptocurrency analyst, shed light on a pivotal support zone for Bitcoin. According to his analysis, over 3 million addresses have acquired close to 1.50 million BTC in the price range of $41,800 to $43,080. This zone is currently deemed the most crucial for Bitcoin’s stability and future price trajectory.

Recently, Bitcoin’s price oscillated just below the $44,000 mark, with market dynamics characterized by a tug-of-war between bearish and bullish sentiments. However, a notable rally across the cryptocurrency spectrum over the last 24 hours has injected optimism into the market. The total cryptocurrency market capitalization has risen to $1.69 trillion, a 2% increase. Meanwhile, Bitcoin’s dominance index has edged up to 51.2%.

Today, Bitcoin is trading at $44,536, backed by a 24-hour trading volume of approximately $20.9 billion. The coin has appreciated by 3.32% in the last 24 hours alone. Bitcoin’s market capitalization currently stands at $867 billion, underpinned by a circulating supply of 19,621,393 BTC, edging closer to its maximum cap of 21 million coins. This uptrend underscores a market largely influenced by bullish investors, setting a positive tone for the cryptocurrency’s outlook.

Bitcoin’s latest performance has been marked by significant whale activity and a clearly defined support zone, pointing to a potentially stabilizing market. With large-scale investors increasing their stakes and key price levels being actively defended, the market sentiment appears cautiously optimistic as it navigates through ongoing fluctuations and regulatory developments.