While bitcoin continues to trade within the $60,000 to $70,000 range, a new wave of optimism is emerging from on-chain analysis. Willy Woo, a network analyst, visited x on May 7 totwitter.com/woonomic/status/1787784015740862554″ target=”_blank” rel=”noopener nofollow”> point an exciting development: high net worth btc holders have been rapidly accumulating the currency.
High net worth whales pile up
In a chart, the analyst noted that whales, entities that hold between 100 and 1,000 btc, have been gobbling up btc for the past two months. Their participation, Woo says, has been the “biggest buying spree” by this type of whale in recent history.
However, while there is enthusiasm, some argue that this cohort's sharp rise in btc accumulation could be due to bitcoin exchange-traded fund (ETF) issuers. Since the US Securities and Exchange Commission (SEC) approved the first spot ETFs in January, these issuers, including Fidelity, Bitwise and ProShares, now control more than 850,000 btc.
Still, Woo counters this argument and emphasizes that this rally is not due to the involvement of these Wall Street players. The analyst explained that, according to the available data, these entities are “different” and have been selected using forensic grouping techniques.
Additionally, Woo notes that publicly available spot ETF flow data reveals a discrepancy. For example, while these whales have been buying btc for the two months, accumulating over 220,000 btc according to twitter.com/woonomic/status/1787826636429389845″ target=”_blank” rel=”noopener nofollow”>network activityETF spot flows have been declining, fetching only about 165,000 btc during this period.
This deviation suggests that investors, including institutions, who gain exposure to btc through spot ETFs cannot account for all of the whale activity.
bitcoin Buying Pressure Remains, Will Bulls Break Above $73,800?
Furthermore, Woo clarifies that the accumulation of the last two months was not a single, massive purchase. Instead, the analyst explains, a clear pattern of sustained purchases for 30 days in two months is observed.. This makes it evident that their approach was deliberate and that they were eager to accumulate strategically when prices were low.
That whales are involved and actively buying, based on on-chain activity, is optimistic. the coin has moved horizontally over the past two months since btc prices hit a high of $73,800.
Earlier this month, bitcoin prices fell as low as $56,500 before steadily recovering over the weekend. For the uptrend to sustain, there must be a conclusive close above $70,000 and ideally $73,800. Analysts predict an eventual increase to $100,000.
Featured image from Canva, TradingView chart
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
