Bitcoin whales have resumed accumulating coins in what has turned out to be the biggest Bitcoin accumulation event in 2021. A number of Bitcoin whales addresses that currently hold a number of 100 to 10,000 bitcoins in their wallet accumulated over 60,000 bitcoins in a single day.
Lately, Bitcoin has been sluggish in the market due to a high number of sell-offs and not enough people buying back in the coin. But over the past six weeks, the whale wallets have accumulated over 100k bitcoins. With over 60% of these Bitcoins being bought in just one day.
Related Reading | Bitcoin Whale Warns Of “November 2018 Vibes.” What This Means
This accumulation event sent the coin price shooting up. This helped Bitcoin to break the $35,000 price point which it had been struggling to break since the crash from $64k began.
Imminent Bitcoin Squeeze?
No doubt that wealthy investors bringing their money back into the market are always a good thing. More money coming into the market is always the best way to get the price of assets up. But it also begs the question of the intentions of the Bitcoin whales for accumulating such a high amount of Bitcoin in the space of 24 hours.
A squeeze could be a plausible reason. Putting millions into the markets sees the prices shoot up. And when prices shoot up, whales can sell the coins that they got for a higher price.
Although with over nine million coins held across these whale wallets, it could be safe to think that these are not weak hands in the market just looking to make a quick buck.
A down market has always been a buying opportunity for whales, and it seems they are taking full advantage of the opportunity.
Related Reading | Why Bitcoin Could Still Hit $100K This Year
The Bitcoin market had succumbed to the massive FUD coming out of China with the Bitcoin mining bans and crypto trading bans. Furthermore, the announcement from Tesla CEO Elon Musk that the automaker would not be accepting Bitcoin anymore further helped to drive the coin price down. Musk had said the company would start accepting Bitcoin payments again when a milestone of 50% green Bitcoin mining was reached.
Retail investors have had to watch the coin price crash after an impressive run. And continue downward for what has been a couple of brutal months.
But now, it seems that faith is returning to the market.
Kickstarting The Next Bull Run
So far, July is off to a good start with the news of the whale accumulation. 60K bitcoins across a number of large Bitcoin holders have seen the price of Bitcoin spiked.
In the last 24 hours, the price of Bitcoin briefly hit over $35,800. Before losing momentum and falling back down to a current price of $34,400 at the time of writing this article.
Bitcoin briefly hit $35K as whales accumulated Bitcoin | Source: BTCUSD on TradingView.com
Bull runs are always started by the same thing; scarcity. People buy large amounts of coins, hold them, thereby creating scarcity in the market. With fewer coins going around in the market, investors who are willing to buy are buying at higher prices in order to beat out the competition.
Once the demand for the coin starts to exceed supply, then the price starts seeing a surge.
The current accumulation by the Bitcoin whales means that they have just removed 60k bitcoins from the market and are currently holding it in their wallets. And according to Santiment, these whales hold almost half of the circulating supply of bitcoins.
These coin accumulations were recorded across wallets holding 100 to 10,000 bitcoins. They have increased their holdings by 100,000 bitcoins in a month and a half. At the same time, the holdings of wallets holding 10,000 to 100,000 bitcoins have dropped by nearly the same amount.
Featured image from Fox Business, chart from TradingView.com