Interest in Bitcoin, the largest cryptocurrency asset remains robust among investors following favorable macroeconomic and market conditions. A strong investor interest signals confidence in BTC’s long-term prospects, which often precedes an increase in prices over some time.
Whales And Sharks Continuously Fuel Bitcoin Demand
Consistent bullish activity has been spotted among large Bitcoin investors and traders in light of political shifts. Leading data analytics platform Santiment reported that whale and shark investors continue to accumulate BTC at a substantial rate, suggesting heightened optimism and demand.
Data from Santiment shows that over 1,002 coins per day have been accumulated by 10+ BTC wallet addresses over the past 5 days leading up to today. Santiment shared the development as discussion about Donald Trump’s inauguration is likely to be a sell-the-news event mounts in the community.
In the ongoing cycle, the cumulative influence of wallet addresses containing 10 or more BTC has significantly changed the direction of the markets. Furthermore, Santiment outlined 5 distinct cycles, whereby Bitcoin whales and sharks have impacted the market trajectory in the last 6 months.
As seen between July 20 and October 11, 2024, about 164 BTC were acquired daily, triggering a 7.3% drop in prices. From October 11 to November 5, 2024, over 884 BTC were purchased by whales and sharks per day, which led to a 9.8% price increase.
Also, between November 5 and December 26, Santiment highlighted that accumulation rose to 2,060 BTC each day, triggering a more than 35.8% price spike. Meanwhile, from December 26 to January 15, 2025, Bitcoin’s price rose by over 6.2% due to these investors accumulating about 156 BTC daily.
From January 15 to the present day, daily accumulation stands at 1,002 BTC, raising the possibility of a notable price increase. Thus far, BTC’s price has risen by 2.8% since the trend began on January 15. It is a positive indication that important stakeholders intend to steer market values in the right direction when they contribute at least 1,000 BTC every day.
Will The Trend Cause A Rally For BTC?
When whales and sharks accumulate BTC significantly, it may be a sign that investors are anticipating a rally. However, when they barely accumulate or hold less BTC over an extended period, it might indicate that prices would move erratically. This raises the possibility of a correction phase due to a lack of large wallet support.
As large investors’ interest remains robust, this persistent accumulation may play a pivotal role in influencing BTC’s price trajectory in the near term. With prices demonstrating strength reaching a new all-time high a few days ago, extended growth is likely at this point.
Santiment has underscored the behavior as an important factor to observe in order to make more informed choices in crypto, especially in the ongoing cycle.
