Bitcoin Price Slump and Whale Accumulation

Over the past few weeks, bitcoin (BTC), the leading cryptocurrency by market capitalization, experienced a significant price drawback, dropping from around $99,000 to as low as $77,000.

Despite this price slump, whales have been increasing their BTC stash by accumulating large quantities of the apex crypto asset. On-chain data from the blockchain analytics platform CryptoQuant indicates that these high-net-worth holders bought over 200,000 BTC this month alone.

Bitcoin Whales Bought Over 200K BTC

The CryptoQuant report highlights high-net-worth bitcoin holders whose addresses have held a minimum of 1,000 BTC for less than six months. These entities likely include deep-pocketed individuals and institutions. Since November 2024, these whale wallets have bought over 1 million BTC, indicating a bullish stance on the leading crypto asset at its recent price levels.

Donald Trump’s emergence as the President of the United States is a significant catalyst likely prompting these whales to invest in the leading cryptocurrency. Trump’s election victory was also announced in November 2024, when these whales began stacking BTC. Since his inauguration, the U.S. president has remained committed to bringing bitcoin to the forefront of the country’s financial landscape.

The influx of fresh capital into BTC could establish a strong support level for the leading crypto asset, should it rise above its current levels to new heights. The CryptoQuant analyst believes bitcoin may reach its all-time high of $109,100 and could potentially soar above it if the ongoing accumulation trend continues.

Aside from these whales, other long-term bitcoin holders have been accumulating BTC, including Strategy (formerly MicroStrategy), Metaplanet, and El Salvador.

A Bullish or Bearish Move?

While the ongoing BTC accumulation trend might seem bullish for the apex crypto asset and the broader market, on-chain data from IntoTheBlock suggests otherwise. The blockchain analytics platform noted that a rise in BTC acquisitions from long-term holders typically occurs during bear markets. Though this signal is not always reliable, IntoTheBlock cautions users to consider the possibility of bearish sentiment.

Other market experts, including the CryptoQuant founder, also suggest that the bull cycle could be over. At the time of writing, BTC sold for $83,500.