Bitcoin whales, or large investors with ample capital supply, have been on massive accumulation, notably since the approval of the Bitcoin spot ETFs in the United States.
According to crypto analyst Ali, Bitcoin whales have been on a buying spree, acquiring 140,000 BTC over the past three weeks, amounting to $6.16 billion.
The first set of Bitcoin ETFs went live in the United States on Jan. 11, after a decade-long tussle. The approval of the Bitcoin ETF, which allows investors to gain exposure to Bitcoin without holding the actual asset, is seen as a milestone for the crypto industry, as it signals the growing acceptance of Bitcoin as an investment asset.
The increase in whale holdings suggests that these investors are confident in the long-term prospects of Bitcoin, despite the recent market volatility. The whales may also be taking advantage of the price dips to accumulate more Bitcoins at lower prices, anticipating a further rally in the future.
Bitcoin topped $48,000 for the first time in a month, with U.S. exchange-traded funds holding the digital currency, seeing a steady inflow of cash from investors and a rising risk appetite across financial markets.
Net inflows (including Grayscale outflows) continue to climb, highlighting that the new spot Bitcoin ETF issuers are more than offsetting Grayscale outflows. According to BitMEX Research, spot Bitcoin ETFs saw strong inflows of $541.5 million on Friday, with a net inflow totaling 11,388 BTC.
At press time, BTC was up by 2.10% over the past 24 hours to $48,104. The crypto asset is also up 13% weekly and would close its seventh consecutive day of gains if today closes in the green.
Veteran trader and creator of Bollinger Bands John Bollinger speaks of the Bitcoin price trend, saying, "The expectation should now be for a walk up the upper band until a divergence is detected."