Bitcoin Whales Replenish Holdings with $1.235 Billion Ahead of Halving
As the Bitcoin network prepares for its halving event, a familiar trend of accumulation has resurfaced among BTC whales.
In a recent post by market intelligence firm IntoTheBlock, it was revealed that Bitcoin whales may have started buying BTC during the dip leading up to the halving.
Notably, the largest Bitcoin holders collectively increased their holdings by 19,760 BTC tokens on April 18. This group represents more than 0.1% of the total circulating Bitcoin.
According to the report, these whales acquired the additional tokens at an average price of $62,500 per BTC, amounting to a staggering $1,235,000,000 investment to bolster their holdings after weeks of bearish volatility.
This significant accumulation coincided with Bitcoin’s drop to the $59K range in the past 24 hours. Prior to this, Bitcoin experienced a 10% decline to $60,900 last Saturday, followed by a false recovery rally to $66,878 before plunging below $60K.
During this period of market turbulence, IntoTheBlock confirmed that the whales had not been accumulating more tokens, further depleting their holdings.
Interestingly, this recent $1.23 billion acquisition has had a positive impact on Bitcoin’s price. At the time of writing, Bitcoin has reached a high of $65,481 from the $59,651 dip, marking a 9.77% gain in the last 24 hours.
Experts suggest that this recent gain could be a prelude to a more significant bull rally. Historical data shows that accumulations by major Bitcoin holders often precede substantial increases in the cryptocurrency’s price.
Additionally, IntoTheBlock presented a chart in a previous update, illustrating Bitcoin’s price trajectory following each halving event. The chart revealed a recurring bullish trend that typically lasted for about a year after the halving, during which Bitcoin’s price more than doubled.
For example, after the halving in May 2020, Bitcoin’s price reached a low of $8,700. Exactly one year later, it had surged to $64K.
It is important to note that Bitcoin experienced a significant price correction after reaching $64K, before eventually climbing to an all-time high of $68K. Overall, Bitcoin recorded a gain of over 700% after the 2020 halving.
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