Prominent Bitcoin whales remained unfazed by recent price fluctuations and substantially increased their Bitcoin holdings. During the last two weeks of August, addresses holding at least 0.1% of the Bitcoin supply, valued at over $500 million, boosted their holdings by a collective $1.5 billion, media reports said.
This accumulation of Bitcoin occurred even as inflows into centralized exchanges remained minimal, hinting at genuine buying demand rather than funds simply shifting between addresses, explained by Lucas Outumuro, head of research at IntoTheBlock.
Whales, often referred to as entities with substantial digital asset holdings, wield significant influence over cryptocurrency markets, prompting close monitoring by crypto enthusiasts seeking insights into market movements.
This increase in Bitcoin holdings took place amid a period when Bitcoin’s price experienced a dip to a two-month low. The dip was briefly countered by a significant court decision in Grayscale’s pursuit to list a spot Bitcoin exchange-traded fund (ETF) in the United States.
The accumulation by large Bitcoin holders commenced after August 17 when Bitcoin’s price plummeted by more than 10%, dropping below $26,000, marking its lowest point since June, as per IntoTheBlock’s data.
Furthermore, these large holders increased their Bitcoin holdings earlier in the week following a legal victory by asset manager Grayscale against the U.S. Securities and Exchange Commission (SEC). A federal appeals court ruled that the SEC must reconsider its denial to convert the $14 billion Grayscale Bitcoin Trust into a more favorable spot Bitcoin ETF.
Market analysts interpreted this court decision as a significant step toward the introduction of the first spot Bitcoin ETF in the United States, potentially broadening Bitcoin’s accessibility to a new category of investors.
However, Bitcoin’s price later retraced all its gains from the initial surge prompted by the Grayscale ruling and fell back below the $26,000 mark on Friday.
Despite the price’s recent weakness, the ongoing accumulation of Bitcoin by large holders suggests growing optimism among institutional investors, particularly as key ETF decisions draw nearer, as noted by Lucas Outumuro.
