Bitcoin addresses with substantial holdings continue to climb despite the cryptocurrency reaching new heights, surpassing the $70,000 mark for the first time. The latest on-chain data reveals a significant increase in unique addresses holding at least 1,000 Bitcoin, commonly called “whales.”
Whale numbers surge
The number of addresses holding a minimum of 1,000 Bitcoin has surged to 2,104 as of March 7, indicating a notable uptick in whale activity. This surge, however, falls short of the peak recorded in February 2021 when Bitcoin prices were hovering above $46,000. Nonetheless, the growing count of large Bitcoin holders suggests a buoyant market sentiment among institutional investors and high-net-worth individuals.
Contrary to expectations, these whales are not rushing to capitalize on the current rally by selling their holdings. On the contrary, they seem to be holding onto their Bitcoin, indicating a strong belief in the cryptocurrency’s potential for further appreciation. This sentiment is underscored by on-chain metrics, which reveal a reluctance among whales to offload their holdings, even at record-high prices.
On-chain insights and investor behavior
In a recent post, Julio Moreno, the head of research at on-chain intelligence firm CryptoQuant, highlighted the growing confidence among Bitcoin whales. Moreno pointed out that transfers from exchanges to whales have reached new highs, indicating a substantial influx of Bitcoin into the wallets of large investors.
Conversely, transfers from whales to exchanges have only seen a modest increase, suggesting that whales are not rushing to liquidate their holdings despite the prevailing bullish market sentiment.
Bitcoin ETFs driving demand
One factor contributing to the sustained demand for Bitcoin among institutional investors is the proliferation of spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs, such as the BlackRock iShares Bitcoin Trust (IBIT), have witnessed significant inflows, with daily volumes reaching as high as $788 million.
The availability of Bitcoin exposure through regulated financial products has made it easier for institutional investors to gain exposure to the cryptocurrency market, further fueling demand and driving prices higher.
The resilience of Bitcoin whales amidst the current market rally suggests a high degree of confidence in the cryptocurrency’s long-term prospects. Despite reaching unprecedented price levels, whales hold onto their Bitcoin, signaling optimism for further appreciation. With institutional demand growing, fueled by the proliferation of Bitcoin ETFs and favorable market conditions, Bitcoin’s upward trajectory appears poised to continue.
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