Bitcoin set a new all-time high price of $73,750 at the beginning of 2024, marking an incredible 73% gain in the first quarter of the year. Despite a subsequent decline in the value, the biggest stakeholders in Bitcoin have shown a consistent trend of accumulation throughout the first three months of the year. This accumulation pattern indicates a high level of confidence in the profitability of the asset, especially in anticipation of the upcoming halving event.
According to a recent report by blockchain analytics platform Santiment, Bitcoin whales – holders of 100-100,000 BTC – have been actively accumulating more BTC in the last three months. These whales collectively purchased a total of 319,310 BTC valued at $21.6 billion. This significant accumulation by the large stakeholders in Bitcoin is seen as a positive sign for the future valuation of the asset. On the other hand, retail traders holding 0-100 BTC offloaded 105,260 BTC, worth $7.2 billion, within the same timeframe.
The increased market share of BTC whales by 1.4% in the last three months is seen as a bullish signal, particularly in the lead-up to the highly anticipated Bitcoin halving scheduled for April 19. The Bitcoin halving event, which occurs every four years, reduces the amount of miners’ rewards on the Bitcoin blockchain by half. This event is generally considered positive as it creates scarcity of the asset, driving up demand and market price in the long term.
Currently, Bitcoin is trading at $67,521, showing a slight decline in the last day and seven days. The daily trading volume for BTC has also decreased by 6.80% and is valued at $32.35 million. Despite these short-term fluctuations, Bitcoin has seen an impressive year-to-date increase of 140.65% and maintains a market cap of $1.33 trillion, solidifying its position as the largest digital asset in the world.
The accumulation trend by BTC whales and the positive market outlook ahead of the Bitcoin halving event signal a strong confidence in the future valuation of Bitcoin. While short-term price fluctuations in the market are inevitable, the long-term growth potential of Bitcoin remains promising. Investors are advised to conduct their own research and consider the risks associated with investing in cryptocurrencies before making any financial decisions.
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