The number of large Bitcoin holders, known as whales, has surged to its highest level since January 2021, signaling potential for a price rally.According to data from Glassnode and André Dragosch, head of research for Europe at Bitwise, the number of entities holding at least 1,000 $BTC rose to 1,678 earlier this week.The increase in whale accumulation is seen as a positive sign for Bitcoin’s price outlook.
Growing Number of Whales Indicates Strong Demand
Whale entities, which are defined as clusters of crypto wallet addresses controlled by a single participant holding 1,000 BTC or more, are closely monitored because of their ability to influence market liquidity and prices.The growing confidence among these large holders coincides with strong demand for alternative Bitcoin investment vehicles, including U.S.-listed spot ETFs.
While whales are increasing their holdings, retail investor activity has slowed.
According to CryptoQuant, retail investors have added just 1,000 Bitcoin in the past 30 days, marking a historically slow pace of accumulation.
In contrast, larger investors, holding between 1,000 and 10,000 BTC, have expanded their holdings significantly, growing by 173,000 Bitcoin this year compared to the 30,000 added by retail investors.
“Since the start of 2024, the holdings of other larger investors (those holding between 1 and 10K Bitcoin) have grown faster than the holdings of retail investors on a yearly basis. As of today, retail holdings have grown by 30K $BTC , compared to 173K Bitcoin of other larger investors.”
Bitcoin’s price has been hovering around $67,000, about 10% below its all-time high of $73,800.Prices briefly topped $69,000 earlier this week before facing pressure from rising U.S. Treasury yields and a strengthening dollar.Despite these headwinds, analysts remain optimistic about Bitcoin’s trajectory.Options trading on Deribit points to key price targets of $80,000 and $100,000 for the remainder of the year, suggesting that $BTC could soon see new record highs.
