Bitcoin whales went out to hunt for buying opportunities

Bitcoin (BTC) is trading this Thursday, October 3, near $60,000. As of this publication, it remains above that price mark.

This decline is, in part, a consequence of a second consecutive day of money outflows from bitcoin exchange-traded funds (ETFs), added to the uncertainty generated by the armed conflict in the Middle East, which recently escalated with an Israeli bombing of Beirut, capital of Lebanon. These events tend to cause drops in the price of assets like BTC due to the risk aversion they generate in financial markets.

In the midst of this price drop, which has reached 5% since the beginning of October, bitcoin whales, or those investors who own large amounts of the digital currency, have gone out to “hunt for offers.” According to data from CryptoQuant, these whales are acquiring notable amounts of BTC.

BTC whales are, by definition, a Bitcoin address with more than 1,000 coins accumulated. These large investors can influence the market. Their behavior usually indicates future trends, since its ability to move large quantities can affect the price.

Ki Young Ju, CEO of the analysis firm CryptoQuant, noted that the market I had never seen as much accumulation as now, a trend that is in the hands of the “new whales,” according to the specialist.

He rules out that these new whales have anything to do with ETFs, because “recent accumulation shows little correlation” with those investment vehicles. In July, when this accumulation phase began, Young Ju stated that BTC inflows to the addresses of permanent holders “are not due to ETF wallets.”

“These wallets are not from exchanges or miners and have no exits; Most of them are custody wallets,” he said at the time.

He believes that the new whales, mainly custodial whales and ETFs, have not yet generated sufficient profits.

“The current market volatility is just a game in the futures market. Real whales move the market through spot trading and OTC markets. This is why on-chain data is crucial. “Older whales haven’t seen particularly high returns, and the whales that got into this recent bull run have barely made any profits.”

Ki Young Ju, CEO of the analysis firm CryptoQuant.

Ki Young Ju clarifies that it is not possible to identify the exact reasons behind the price movements or the intentions of the whales. “But we do know that new whales are accumulating BTC in the OTC markets without affecting prices on exchanges,” he said.

The massive accumulation of BTC by whales was also seen in mid-August, when BTC also fell to $61,000, as reported by CriptoNoticias, indicating that these purchase strategies are seen as opportunities to acquire the digital currency. at lower prices before future increases.

Bullish expectations for bitcoin for the remainder of 2024 and extending into 2025 are based on a combination of macroeconomic factors and specific events in the digital asset market.

The increase in global liquiditydriven by expansive monetary policies of central banks, and the anticipation of interest rate cuts, which encourage investors to look for assets with high yield potential, are key pillars.

Besides, the halving effect could start to feel. This refers to the historical behavior of bitcoin, which tends to skyrocket approximately six months after each halving (the most recent was in April 2024).

Financial institutions and analysts have forecast significantly high prices for BTC, with predictions ranging from $100,000 by the end of 2024 and up to $250,000 in 2025, based on technical and fundamental analysis. This is, for example, the case of the English bank Standard Chartered, which has projected a notable rise for the digital currency.

This optimism is reinforced by the entry of significant funds into bitcoin ETFs, amounting to more than 45 billion dollars until now, what reflects a confidence in its future value based on market trends and supply and demand dynamics.

This article was written with the assistance of artificial intelligence tools, under human supervision.