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Bitcoin analyst Willy Woo identified a notable trend that has appeared onthe Bitcoin market: a surge in buying activity by high-net-worth holders.
The past two months have witnessed an unprecedented buying spree among high-net-worth Bitcoin holders, also known as "whales" within the crypto community. These individuals or entities, with significant financial resources at their disposal, have been aggressively accumulating Bitcoin at levels not seen before.
"Never has there been such a buying spree by high net worth Bitcoin holders as has happened in the last 2 months with BTC ranging between $60,000 to $70,000. These are the guys holding between 100 and 1000 BTC or roughly $6.5 million - $65 million of BTC," Woo tweeted.
Never has there been such a buying spree by high net worth #Bitcoin holders as has happened in the last 2 months with BTC ranging between 60-70k.
— Willy Woo (@woonomic) May 7, 2024
These are the guys holding between 100 and 1000 BTC or roughly $6.5m - $65m of BTC. pic.twitter.com/oUuqD5UNdG
This aggressive buying behavior raises the question: do these whales know something that the rest of the market does not?
One probable explanation for this surge in whale activity could be their anticipation of a forthcoming bullish trend on the Bitcoin market. With institutional adoption on the rise, whales may be positioning themselves ahead of a potential price rally, believing that current levels are an ideal entry point for accumulation. However, the specific motivations for the whales' buying frenzy remain unknown.
Here's the catch
Data from on-chain analytics firm IntoTheBlock reveals that Bitcoin whales, or addresses with more than 1,000 BTC, have accumulated significantly in recent months, particularly during price dips.
IntoTheBlock notices a trend of dip buying among Bitcoin whales, albeit with waning conviction.
"Whales are buying the dip, but is their conviction dwindling? Addresses holding over 1000 BTC have accumulated strongly in recent months, especially during dips," IntoTheBlock observed, adding that prices have risen shortly after each accumulation.
However, a falling accumulation trend has been noted among these BTC large holders, with each surge in accumulation less than the previous one. Could this indicate that whales have less and less appetite to buy the dip?
At the time of writing, BTC was down 1.60% in the last 24 hours to $63,003.