Bitcoin Whale Accumulation Soars After Price Fall

Large Bitcoin holders have resumed significant accumulation as the cryptocurrency’s price dipped toward the end of 2024, following its record six-figure high, according to Blocktrends analyst Cauê Oliveira.

In a Jan. 8 CryptoQuant post, Oliveira revealed that institutional investors had accumulated over 34,000 Bitcoin, valued at approximately $3.2 billion.

He noted that this buying activity has provided critical support for Bitcoin’s current recovery.

The accumulation came after wallets holding between 1,000 to 10,000 BTC offloaded 79,000 Bitcoin in the week following Dec. 21.

This sell-off occurred shortly after Bitcoin peaked at over $108,000 on Dec. 17, triggered by a U.S. Federal Reserve interest rate cut, which led to a 15% correction.

Oliveira stated that “large players took advantage of the consolidation,” executing significant trades broken into smaller orders to accumulate Bitcoin below $95,000.

At the time of writing, Bitcoin was trading around $94,900, down approximately 2.3% on the day as the broader crypto market reacted to U.S. jobs and economic data that dampened hopes for additional interest rate cuts at the end of January.

In a Jan. 6 market note, Bitfinex analysts highlighted that sell-side liquidity in Bitcoin markets is “shrinking at a rapid pace,” suggesting that the worst of the downward price pressure may now be over.

Looking ahead, analysts predict Bitcoin could experience a historic rally in 2025, supported by anticipated pro-crypto policies from U.S. President-elect Donald Trump and the potential for nation-state adoption of Bitcoin.

In a Jan. 7 paper, Fidelity Digital Assets research analyst Matt Hogan wrote that the firm expects “more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin.”

Blockware analysts further suggested last month that the introduction of a U.S. Bitcoin reserve could drive Bitcoin’s price to over $150,000 in a worst-case scenario, while the best-case scenario could see it soar past $400,000.

Sources:

https://cointelegraph.com/news/bitcoin-whales-scoop-34k-btc-after-december-dump

https://cryptoquant.com/quicktake/677e4de3a315a278ef69c23b-After-the-biggest-dump-of-2024-whales-are-accumulating-Bitcoin-again