Crypto Whales on a Buying Spree as Bitcoin Gains Institutional Interest
The price of Bitcoin is once again soaring, inching closer to its all-time high of around $73,700. In just 24 hours, the cryptocurrency saw a surge of over 4%. This temporary uptrend put all Bitcoin holders in profit, but the asset has since corrected to $72,334 at the time of writing.
However, it’s not just the price that is growing for Bitcoin. Data reveals a significant increase in institutional interest in the cryptocurrency. Analyst Miles Deutscher has highlighted the rapid accumulation of Bitcoin by whales, describing it as the “fastest-ever pace” for them.
Deutscher also noted that institutional investors are showing more interest in Bitcoin compared to retail traders. Data from CryptoQuant supports this claim, showing that whale holdings have reached an all-time high. These large Bitcoin wallets now hold more than 3.3% of the circulating supply, which amounts to over 670,000 BTC.
Furthermore, a recent report confirms the growing presence of new whales in the Bitcoin network. In just two weeks, 297 new wallets holding 100 BTC or more were added, indicating an increase in whale accumulation.
The surging interest from institutional traders is further evidenced by the trading volume of the iShares Bitcoin Trust (IBIT) on Tuesday. Bloomberg’s senior analyst Eric Balchunas observed a six-month volume high of $3.3 billion for BlackRock’s Bitcoin fund on October 29. Balchunas attributes this volume spike to institutional investors experiencing a “fear of missing out” and expects more inflows in the near future.
BlackRock has seen substantial inflows recently as interest in Bitcoin ETFs continues to rise. After a $1 billion inflow last week, the issuer attracted $642 million yesterday, marking its third-highest inflow since inception.
In addition, the US Bitcoin spot ETF recorded a net inflow of $870 million on Tuesday, the largest since June 5. With BlackRock’s involvement, this investment vehicle now holds $72.55 billion worth of Bitcoin, accounting for 5.07% of the circulating supply.
It is important to note that this article provides informational content and should not be considered financial advice. The opinions expressed here 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, and The Crypto Basic is not responsible for any financial losses incurred.