Recent on-chain data has brought attention to a significant development in the world of Bitcoin. Specifically, addresses holding at least 1,000 BTC, commonly referred to as Bitcoin whales, have reached a new milestone. The number of these substantial holders is now at its highest since the bull market levels of January 2021. With Bitcoin continuing to trade near its all-time high, this surge in whale activity prompts discussions about the potential for Bitcoin to break new all-time highs soon.
Whale Activity and Holder Count Reaches New Highs
Bitcoin whales have consistently served as critical indicators of market sentiment among traders and long-term holders. According to Glassnode data, as presented by André Dragosch, director and head of research for Europe at Bitwise, the number of Bitcoin addresses qualifying as whales has been on a steady ascent since January 2024. Back then, there were just under 1,500 such addresses. The current figures reveal a remarkable increase, with 1,678 addresses now holding at least 1,000 BTC, marking the highest level of whale activity since the major bull run in January 2021.
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This upward trajectory has been fueled by the current market climate and the influx of institutional investors. The persistent growth in whale numbers suggests substantial confidence among larger holders, each possessing at least $67 million in Bitcoin, given the cryptocurrency’s current price.
New All-Time High Incoming?
The accumulation of Bitcoin by whales leading up to the previous peak in January 2021 was a pivotal factor that propelled Bitcoin’s price to exceed $69,000. Although Bitcoin has surpassed this previous high, reaching a new all-time high of $73,737 in March 2024, the same accumulation pattern appears to be emerging once more. This surge in BTC accumulation by whales has provided the necessary momentum to prevent further price corrections following a recent false breakout from a descending triangle.
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Despite the false breakout, the overall sentiment surrounding Bitcoin remains optimistic. On-chain analytics provider CryptoQuant highlights that it’s not just the whales driving the market dynamics. Retail investors have also become active participants. On-chain data indicates a 13% increase in retail demand over the past 30 days, mirroring the retail enthusiasm witnessed in March 2024, just before Bitcoin achieved its latest all-time high.
Retail Activity and Market Sentiment
Retail on-chain activity has made a notable comeback after a four-month lull. This resurgence reflects growing interest among smaller investors, contributing to the overall market momentum. As of the time of writing, Bitcoin is trading at $67,000, with a 24-hour range of $65,161 to $67,538 and a seven-day range of $65,441 to $69,227.
Notably, Bitcoin is now only about 10% away from surpassing its all-time high once again. With increased buying interest from both whales and retail investors, Bitcoin seems poised for another breakout, potentially setting a new price record before the end of 2024.
