Bitcoin whales have resumed coin collecting in what turned out to be the biggest bitcoin accumulation event in 2021. A number of Bitcoin whale addresses that currently hold 100-10,000 bitcoins in their wallets have accumulated over 60,000 bitcoins in a single day.
Bitcoin has been sluggish lately due to a high number of sell-offs and not enough people buying it back. But in the past six weeks, the whale wallets have accumulated over 100,000 bitcoins. Over 60% of these bitcoins are bought in just one day.
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This accumulation event caused the coin price to skyrocket. This helped Bitcoin break the $ 35,000 price point that it had been struggling to reach since the $ 64,000 crash began.
Impending Bitcoin Squeeze?
Undoubtedly, it is always a good thing that high net worth investors get their money back in the market. More money in the market is always the best way to get the price of assets up. But there is also the question of the intentions of the Bitcoin whales to amass such a large amount of Bitcoin within 24 hours.
A squeeze could be a plausible reason. When millions are put into the markets, prices soar. And when prices soar, whales can sell the coins they got for a higher price.
Although over nine million coins are held in these whale wallets, you can be sure that these are not weak hands on the market just out to make a quick buck.
A declining market has always been a buying opportunity for whales and it seems they are taking full advantage of that opportunity.
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The bitcoin market had succumbed to the massive FUD from China with the bans on bitcoin mining and crypto trading. In addition, the announcement by Tesla CEO Elon Musk that the automaker would no longer accept Bitcoin further helped push the coin price down further. Musk had announced that the company would start accepting bitcoin payments again when it reached a milestone of 50% green bitcoin mining.
After an impressive run, private investors witnessed the drop in the price of coins. And continued down for a brutal couple of months.
But now it seems that belief is returning to the market.
Kickstart for the next bull run
So far July has got off to a good start with the news of whale gathering. 60,000 bitcoins with a number of major bitcoin holders have driven the price of bitcoin soaring.
In the past 24 hours, the price of Bitcoin momentarily hit above $ 35,800. Before it lost momentum and dropped to a current price of $ 34,400 at the time of this writing.
Bitcoin briefly hit $ 35,000 when whales amassed bitcoin | Source: BTCUSD on TradingView.com
Bull runs always start with the same thing; Scarcity. People buy and hold large quantities of coins, thereby creating scarcity in the market. With fewer coins on the market, willing investors buy at higher prices to beat the competition.
As soon as the demand for the coin exceeds the supply, the price begins to rise.
The current accumulation of bitcoin whales means that they have just taken 60,000 bitcoins off the market and are currently holding them in their wallets. And, according to Santiment, these whales hold almost half of the circulating bitcoin supply.
These coin accumulations were recorded in wallets containing 100 to 10,000 bitcoins. They increased their holdings by 100,000 bitcoins in a month and a half. At the same time, the stocks of wallets with 10,000 to 100,000 Bitcoins have decreased by almost the same amount.
Featured image from Fox Business, chart from TradingView.com