Bitcoin whales have been on a buying spree, accumulating over 16,000 BTC in just 24 hours following a recent dip in the market. This activity is typically seen during a price correction in the bull cycle, leading to an increase in market inflows. Institutions have also been buying the dip, pouring funds into Bitcoin in anticipation of price gains. This bullish drive comes after Bitcoin reached a new all-time high above $73,000 in Q1 2024, following the approval of spot Bitcoin ETFs by the SEC.
A recent report by CryptoQuant revealed large transfers to whale addresses, with whale purchases exceeding $1.5 billion in just under 48 hours. This comes as traders seek to recover from the recent market dip that wiped out almost $4 billion from the market cap. While the $1.5 billion in whale addresses does not include coins on centralized exchanges, there is a possibility that institutional players have accumulated even more assets. However, the majority of these traders are institutional rather than retail, and for Bitcoin’s price to reach new highs, retail numbers need to increase significantly.
Crypto enthusiasts have reacted positively to recent crypto purchases by Bitcoin mining firms and other institutions. Marathon Digital, for example, has acquired 6,474 BTC in November and has $160 million in cash reserved for potential future purchases. Marathon now holds 34,794 BTC, making it the second-largest corporate Bitcoin holder after MicroStrategy. This positive sentiment in Bitcoin has translated into similar trading patterns in the wider market, with BTC surging to multiple all-time highs this month, leading to an upward swing in altcoins and meme tokens.
The market frenzy has resulted in the total capitalization of the cryptocurrency market surpassing $3 trillion. Bitcoin is currently trading at $97,094 as it attempts to recover from weekly losses, while altcoins like XRP have also seen gains with double-digit weekly numbers. Bitcoin bulls have set short price targets above $100K for this year, and altcoin holders are anticipating gains in their favorite coins. Overall, the recent surge in activity by Bitcoin whales and institutional investors has had a positive impact on the market, driving up prices and instilling confidence among traders and investors.
