Whales are accumulating more Bitcoin (BTC), most likely through OTC deals as exchange reserves are near all-time lows. The trend for US-based investment continues, as more coins are held by American investors.
Bitcoin (BTC) is flowing back into whale wallets, after the most recent market shakedown and liquidations. Retail buyers remain active, but there are also signs whales are buying back BTC through OTC deals.
The most recent rounds of accumulation happen at a time when BTC is once again sliding and threatening to break below $100,000. BTC traded at $101,180.00 following the most recent market correction.
Recently, over 20K BTC flowed back into whale addresses, especially known wallets associated with accumulation. Based on Cryptoquant data, the accumulation is spread across several days, suggesting a gradual buying plan. Accumulation addresses are those that have received two consecutive inflow transactions that are not dust and have not spent their reserves. Inflows into those addresses are now more significant on a daily basis, with the occasional peak day of buying.
Accumulation addresses became more active in the past two months. | Source: Cryptoquant
The recent sideways movement of BTC around $100,000 is creating similar conditions to the summer of 2024 when whales could shake down panicking traders for months. This time around, accumulation is more active, with almost daily inflows into accumulation addresses.
In total, accumulation addresses carry more than $2.7B. The address metric may be inexact, as it would count both miners, whales, and retail. However, the trend has become more significant lately, reflecting the growing demand for owning and controlling BTC in a self-custodial wallet.
The most rapid expansion is observed in wallets holding over 100 BTC, with nearly 2,000 new addresses in January. At the same time, the holdings of whales with over 10,000 BTC are gradually decreasing, or moving to smaller wallets.
For now, the market has not seen capitulation or a deeper drawdown, but whales are still buying during favorable days of lower prices. The recent volatility ahead of the monthly futures expiration event brings additional buying opportunities. The accumulation behavior coincides with the Rainbow chart stage, which suggests the BTC rally is not yet over.
Bitcoin buyers are also ‘Made in USA’
The most recent accumulation reflects the crypto optimism in the USA. More significant capital available, along with expectations of an ongoing bull market, are turning BTC into a US-owned coin. The trend extends the inflow of funds into ‘Made in USA’ crypto, which is now valued at over $529B in total market capitalization.
The ownership ratio of the USA to the rest of the world is at the highest level since before the 2022 market crash. Currently, the ratio stands at 1.61, compared to a total peak in 2022 at 1.86, when the metric started getting tracked.
US buyers became more active in the last quarter of 2024, extending the trend into the new year. | Source: Cryptoquant
The high accumulation for US-based investors tracks the general trend of peak trading during US market hours. A high level of the metric has correlated with previous bull markets, where BTC was becoming inaccessible, except for those with sufficient liquidity.
Fiatleak shows the retail side of US-based demand, with constant inflows from dollar-based buying. However, the real driver of demand includes the daily ETF buying, as well as the building of corporate treasuries.
The talk of a government strategic reserve also boosts confidence in BTC for US investors. The US Government is also still holding, with over $20B in BTC, despite talks of selling all holdings. US-based demand has also been reflected by Bitcoin nodes, where over 26% of all node operators are in the USA, with both personal nodes and cloud-based data centers.
The buying happens at a time when the US dollar is also one of the key pairs for BTC. More than 25% of all BTC trading is in direct pairings with the US dollar, showing robust activity on centralized exchanges.
Read the full article here
