Bitcoin Slides to $62,500 as Whales Continue Accumulating

Bitcoin is currently trading at $62,500, marking a 15% decrease from its all-time high in March. As Bitcoin continues to trade within the range of $60,000 to $70,000, a new wave of optimism is emerging from on-chain analysis. Analyst Willy Woo has pointed out an intriguing development: large BTC holders have been swiftly accumulating during this period. Specifically, wallets holding from 100 to 1000 BTC have been consistently buying BTC over the past two months. Woo noted that their participation marks the “strongest buying spree” of such whales in recent history.

However, while there is excitement, some speculate that the surge in BTC accumulation within this group could be attributed to immediate Bitcoin ETF issuers. Since the SEC approved the first ETFs in January, these issuing entities, including Fidelity, Bitwise, and ProShares, now control over 850,000 BTC.

Nevertheless, Willy Woo rebuts this argument, emphasizing that this increase is not due to the participation of Wall Street firms. The analyst explains that, based on available data, these wallets are distinct and have been selected through filtering techniques.

Willy Woo observes that publicly available data on immediate ETF flows highlights the disparity. While these whales have been buying BTC for two months, accumulating over 220,000 BTC through network activity, immediate ETF flows have been gradually decreasing, only acquiring around 165,000 BTC during this period.

This discrepancy indicates that investors, including institutions accessing BTC through immediate ETFs, cannot account for the entirety of whale activity.

Furthermore, Willy Woo clarifies that the accumulation over the past two months is not a singular large purchase. Instead, the analyst elucidates a clear pattern of sustained buying observed over 30 days within the two-month period. This clearly demonstrates that their approach is deliberate, and they are strategically accumulating during price downturns.