Bitcoin Surges to $71,700 as Whales Ramp Up Accumulation

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Bitcoin has surged to $71,000, driven by significant accumulation from large whale investors. Since mid-March, there’s been a notable trend of major bitcoin holders, known as “whales,” amassing more tokens. Recent data reveals that a specific group of whale addresses now collectively controls over 40% of the total bitcoin supply.

Whales Devour Bitcoin Supply

The accumulation of bitcoin by large holders, or “whales,” with over 1,000 BTC has been a significant trend since mid-March. According to a tweet from IntoTheBlock, addresses holding more than 1,000 BTC currently own over 40% of the total bitcoin supply.

Since mid-March, the amount of Bitcoin held by large holders has steadily increased.

Addresses holding over 1,000 $BTC now collectively own more than 40% of the total Bitcoin supply! pic.twitter.com/yGkTTFj20c

— IntoTheBlock (@intotheblock) June 5, 2024

This concentration of ownership indicates growing confidence and trust among wealthy investors and institutions in BTC’s future price trajectory, with investor sentiment remaining bullish on the leading asset.

Historically, such accumulation by large holders has often preceded significant price rallies, as it reduces the circulating supply and increases scarcity. The steady accumulation by whales suggests they anticipate further appreciation in bitcoin’s value, potentially attracting more institutional adoption and driving the next price surge.

Global ETF Frenzy

This development coincides with a surge in investor activity in spot Bitcoin ETFs, with Wednesday marking the strongest inflows since March. This spike in interest aligns with BTC trading above $71,000. These investment vehicles, which received regulatory approval from the U.S. Securities and Exchange Commission (SEC) in January, have played a crucial role in legitimizing and facilitating market operations.

According to data from Farside, spot Bitcoin ETFs saw inflows exceeding $886 million on Tuesday. Fidelity’s FBTC led with $378 million, followed by BlackRock’s IBIT with $270 million. Notably, Grayscale’s GBTC, which historically experienced outflows, also attracted $28 million from investors.

Investor confidence in Bitcoin and the broader market has been bolstered by a series of positive developments globally. Last month, Hong Kong greenlit Bitcoin ETFs, while Australia welcomed its first BTC ETF earlier this week. Additionally, the SEC approved eight spot Ether ETFs in a landmark decision last month.

More recently, the Securities and Exchange Commission of Thailand approved One Asset Management, a local firm, to introduce Thailand’s first spot Bitcoin ETF.