- Bitcoin whales accumulated large amounts of BTC as the price of the king coin grew.
- Traders remain optimistic, and a high majority continued to hold long positions.
Bitcoin [BTC] inspired massive amounts of optimism over the last 24 hours as its price reclaimed the $69,000 level. One of the reasons for this would be the rising interest in BTC showcased by whales.
Whales move in
According to data from Lookonchain, a whale accumulated 113.735 BTC, totaling $7.85 million, from Binance.
Since the 6th of March, this whale has amassed a total of 1,308 BTC, valued at $89.75 million, at an average price of $68,617.
Source: X
This increased confidence from big investors can act as a catalyst, attracting more buyers and pushing the price higher.
Whales’ involvement can also validate Bitcoin’s potential in the eyes of other investors, further bolstering the market. However, this newfound influence comes with a double-edged sword.
While whale activity can propel prices upwards, it can also lead to sharp drops if they decide to sell their holdings.
Even though whales were accumulating BTC at a higher rate, retail investors were showing less and less interest.
AMBCrypto’s analysis of Santiment’s data indicated that the concentration of addresses holding anywhere between 0.001 and 1.0 BTC had reduced.
If whale investors continue to accumulate as retail investors become passive, the BTC holdings could become more centralized.
This centralization of BTC would make retail investors more vulnerable to whale behavior.
Source: Santiment
Apart from the behavior of holders, another factor that would impact BTC’s price movement would be the activity on the Bitcoin network.
Data from Santiment indicated that Active Addresses on the network had remained high.
Source: Santiment
State of the ecosystem
The high activity on the network could be attributed, in part, to the growing popularity of Ordinals and Inscriptions on the Bitcoin network.
AMBCrypto’s review of CryptoSlam’s data showcased that the number of unique buyers and unique sellers had grown. Additionally, the number of sales of the NFTs on the Bitcoin network had also grown.
Source: Santiment
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Traders remain optimistic about BTC as well. This was indicated by the Put to Call ratio around Bitcoin, which had declined significantly over the last few days.
The high number of call options taken by traders showcased that many bulls are expecting BTC’s price to rise further and even reach its previously attained all-time highs.
Source: The Block