Bitcoin Surges to Multi-Month High, Triggering Whale Activity and Record Accumulation
Bitcoin (BTC) kicked off the week with a strong performance, reaching a new multi-month high of $69,500 on Monday. However, it experienced a slight setback and retraced to $67,563, failing to break the $70,000 mark.
Despite the 2.08% decline in the past 24 hours, Bitcoin has still managed to maintain a 3.22% increase over the past week. Interestingly, this surge in Bitcoin’s price has led to an increase in whale activity, with large-scale investors steadily accumulating the cryptocurrency.
Whale Activity on the Rise
Michaël van de Poppe, Chief Investment Officer & Founder of MN Consultancy, has observed a growing trend of whale activity as Bitcoin hovers near its all-time highs. Despite the current price range, whales have been actively buying more Bitcoin, signaling their confidence in the market.
Van de Poppe sees this as a positive sign for Bitcoin, indicating strong market confidence even in the face of broader economic concerns. The increased whale activity could potentially drive Bitcoin’s price towards targets of $300,000 to $500,000.
Accumulation Addresses Hold 2.9 Million BTC
According to CryptoQuant, a leading on-chain data provider, accumulation addresses now hold over 2.9 million BTC. These addresses, known for their long-term holding behavior, have nearly doubled their Bitcoin holdings since January 2024, when they held just 1.5 million BTC.
Accumulation addresses typically exhibit no outflows, hold at least 10 BTC, and have been active for over seven years. The rapid growth of these addresses in 2024 marks a significant shift, as they held only 100,000 BTC in 2018 and surged to 700,000 BTC during the 2021 bull run. If this pace continues, the total BTC in these addresses could exceed 3 million by the end of the year, with a potential market value of over $210 billion.
Bitcoin Futures Open Interest Reaches New Highs
In addition to increased accumulation, Bitcoin futures open interest (OI) has also reached new peaks. Coinglass data reveals that OI surged to $40.5 billion on October 21, surpassing its previous all-time high of $40.38 billion.
CryptoQuant reports a similar trend, with OI across major crypto exchanges peaking at $20.89 billion, indicating heightened investor participation. The disparity between Coinglass and CryptoQuant’s OI figures is attributed to the different exchanges each platform monitors, with Coinglass including data from CME and others. The spike in OI suggests increased trading activity, which could contribute to higher volatility in the near future.
Disclaimer: This article provides informational content and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.