The last few weeks have seen cryptocurrency prices fluctuate, especially after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against leading cryptocurrency exchanges Binance and Coinbase, but while some investors dumped, large whale accumulated a whopping $3.5 billion worth of BTC.
As the price of BTC floats back to over $27,000, wallets holding between 1,000 to 10,000 BTC have seen a combined increase of $3.5 billion since the first week of April. These major players have not been discouraged by the bearish trend of the past two months, instead taking advantage of the lower prices to increase their stakes, according to Santiment.
Over the past 11 weeks, these Bitcoin whales have accumulated a staggering 131.6k BTC, bringing their holdings to a seven-month high. This trend indicates a level of confidence among these significant holders that the recent decline in Bitcoin’s price is temporary, and that the long-term prospects of the currency remain positive.
Bitcoin whales have a history of making waves in the market, often driving significant price movements and setting trends that ripple out to smaller investors. It’s possible that these whales are accumulating Bitcoin for longer-term strategic reasons.
The whales’ accumulation was revealed at a time in which two of the world’s leading asset management firms, BlackRock and Fidelity Investments, have also been setting their sights on the cryptocurrency.
BlackRock, the world’s largest asset management firm with over $9 trillion in assets under management, filed an application with the SEC for a spot Bitcoin ETF this month, in a move that sparked speculation and optimism across the market.
While the SEC has approved several futures Bitcoin ETFs, it has yet to approve a spot Bitcoin ETF. This has led to much anticipation as to whether BlackRock’s application could herald the first approval of its kind.
Featured image via Pixabay.