Bitcoin’s price has been fluctuating between $60,000 and $70,000, and recent on-chain analysis suggests a wave of optimism in the market. On-chain analyst Willy Woo pointed out that high-net-worth BTC investors have been rapidly accumulating more Bitcoin.
A chart provided by the analyst reveals that whales, who own between 100 and 1,000 BTC, have been increasing their purchases over the past two months. Woo describes this as the “strongest buying frenzy” by whales in recent times.
Some speculate that this surge in BTC purchases by whales is connected to the introduction of spot Bitcoin exchange-traded funds (ETFs). Since the US Securities and Exchange Commission (SEC) approved the first spot ETFs in January, issuers like Fidelity, Bitwise, and ProShares now have control over 850,000 BTC.
However, Woo disagrees with this theory and argues that the recent rise in BTC prices is not due to the involvement of this Wall Street group. He also points out inconsistencies in the public spot ETF flow data. Despite the whales buying BTC for the past two months and owning over 220,000 BTC according to network activity, there has been a decrease in spot ETF flows during this period, with only around 165,000 BTC purchased.
Woo also highlights that the recent accumulation of Bitcoin over the past two months was not the result of a single large purchase. Instead, it was a deliberate and continuous buying activity over a 30-day period. This suggests that whales strategically choose to accumulate Bitcoin during periods of low prices.
Looking at on-chain activities, it is clear that whales are actively involved in purchasing Bitcoin. At the time of writing, BTC prices have dropped below $62,500 and continue to decline from their peak of $73,800.
Disclaimer: This article is not intended as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
