Institutional accumulation through self-custodial services is rising as Bitcoin whales hold a record stake in BTC.
- Bitcoin whales have amassed historic holdings, viewing the current price as a dip.
- Several other indicators also point to a potential market bottom.
The crypto market is buzzing with speculation that Bitcoin could hit a new all-time high by the end of Q4. After rallying over 10% in the past week and breaking the $66K resistance, optimism is high.
However, concerns remain as the growing influence of perpetual traders adds volatility to the mix.
Yet, in a surprising twist, AMBCrypto has identified a hidden pattern that could make Bitcoin more resilient to sudden swings caused by short-sellers betting against its price.
Bitcoin whales are amassing control
New Bitcoin whale wallets now hold approximately 2 million BTC, valued at $132 billion. Each of these wallets contains over 1K BTC, with an average age of under 155 days, reflecting a staggering 813% increase year-to-date.
This accumulation represents 9.3% of Bitcoin’s total supply, indicating significant institutional-level buying through self-custodial services.
Put simply, this massive accumulation excludes miners and exchange wallets, highlighting that more individual wallets are evolving into Bitcoin whales.
This trend is particularly noteworthy as BTC approaches a key psychological level. The aggressive buying by Bitcoin whales could suggest the current price as a potential market bottom.
Moreover, this accumulation helps neutralize the pressure from the derivatives market, where short positions often outnumber long ones, acting as a major resistance against Bitcoin peaks.
So, does this support the idea that BTC could hit its ATH by the end of this cycle, or does it signal an overheated market?
STHs are targeting the dip
Apart from the activity of Bitcoin whales, there has been a notable increase in demand for BTC from STHs over the past 18 days.
This uptick is significant, as STHs typically offload their holdings when BTC reaches a market top, creating resistance as they cash out on gains.
However, the current increase in demand from both STHs and Bitcoin whales suggests that they view the current price as a dip, positioning themselves for potential 10x returns.
As a result, market indicators suggest that BTC may be on the cusp of a parabolic run, potentially leading to a new ATH before this cycle ends.
Historic numbers of Bitcoin whales bolster this analysis and could help weather the storm unleashed by speculative traders. Overall, this trend reflects the growing maturity of the market, showing that investors no longer view Bitcoin as a speculative gamble.
Source: ambcrypto.com
