Bitcoin’s price has been on a ‘rollercoaster’ since the approval of ETFs in the US. After rising to $49,000 on the 11th, BTC fell to $38,500 in the following weeks, worrying investors. This Monday (29), BTC returned to $43,000.
While some were concerned, others saw the decline as an opportunity. Data from IntoTheBlock shows that whales bought US$3 billion ($14.8 billion) worth of Bitcoin in the month of January. Much of this accumulation occurred right after the post-approval decline in the number of ETFs.
Perhaps the most important point of this is that the market has proven that the $40,000 region is strong support. The quick recovery may have frustrated some famous traders who believed BTC could reach $30,000.
Whales continue to accumulate Bitcoin during the fall
In market jargon, a whale is a great investor. For study and analysis purposes, some say that whales are the ones who have more than 1,000 bitcoins ($213 million) in their wallets.
This is a select group that has only 2,021 members, according to data from BitInfoCharts. In other words, a smaller number than the 2,640 billionaires who appeared on the Forbes list in 2023.
According to data from IntoTheBlock, this group took advantage of Bitcoin’s recent decline to show even more dominance in the market. During this month of January, these whales collected US$3 billion (R14.8 billion), the jump is noticeable in the graph.
“Bitcoin whales have increased their BTC holdings by approximately $3 billion (76,000 BTC) since the beginning of this year.”
Although the decline in recent weeks woke up some bears that had been hibernating for quite some time, market sentiment quickly turned around. At the time of writing, Bitcoin is trading at $43,175, up 2.1% from January.
Although the medium-term trend is still upward, supported by five months of appreciation, the wicks formed in the January candle on the charts show that the market is still unaware of the effects of the approval of ETFs.
After all, while GBTC, Grayscale’s ETF, continues to shrink, funds from other managers such as BlackRock and Fidelity are already a success. Overall, the flow is positive, with a surplus of $744 million, a figure that rises to $5.5 billion if GBTC is excluded from the account.
Finally, small investors, also known as sardines, must follow the movement of the whales if they want to stay alive.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
