- Bitcoin whales accumulated large amounts of BTC as the price of the king coin rose.
- Traders remain optimistic and a large majority continued to hold long positions.
Bitcoin [BTC] sparked tremendous optimism in the last 24 hours as the price hit $69,000 again. One of the reasons for this would be the increasing interest of whales in BTC.
Whales move in
According to Lookonchain, a Binance whale has accumulated 113,735 BTC, worth a total of $7.85 million.
Since March 6, this whale has accumulated a total of 1,308 BTC worth $89.75 million at an average price of $68,617.
Source: X
This increased confidence from large investors can act as a catalyst, attracting more buyers and driving up the price.
Whales’ commitment may also confirm Bitcoin’s potential in the eyes of other investors, further strengthening the market. However, this newfound influence has a double-edged sword.
While whale activity can drive prices higher, there can also be sharp drops if they decide to sell their holdings.
Although whales increased their BTC holdings at a higher rate, retail investors showed less and less interest.
AMBCrypto's analysis of Santiment's data showed that the concentration of addresses with values between 0.001 and 1.0 BTC had decreased.
If whale investors continue to accumulate while retail investors become passive, BTC holdings could become more centralized.
This centralization of BTC would make retail investors more vulnerable to whale behavior.
Source: Santiment
Besides holder behavior, another factor that would influence BTC price movement would be activity on the Bitcoin network.
Data from Santiment showed that the number of active addresses on the network remained high.
Source: Santiment
State of the ecosystem
The high activity on the network could be partly due to the growing popularity of atomic numbers and inscriptions on the Bitcoin network.
AMBCrypto’s review of CryptoSlam’s data found that the number of individual buyers and individual sellers has increased. In addition, the number of NFT sales on the Bitcoin network has also increased.
Source: Santiment
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Traders also remain optimistic about BTC. This was indicated by the put-to-call ratio around Bitcoin, which had fallen significantly in the last few days.
The high number of call options used by traders showed that many bulls expect the price of BTC to continue rising and even reach its previously achieved all-time highs.
Source: The Block
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