- Whales have been accumulating Bitcoin this quarter.
- Bitcoin’s realised capitalisation is at an all-time high.
- Analysts expect a new price peak to follow.
In the last two months, Bitcoin whales have gobbled up 1.2 million coins worth $122 billion.
That’s according to analysts at CEX.IO, a crypto exchange, who say that this kind of sudden accumulation is a signal that Bitcoin will soon reach an all-time high price.
Bitcoin traded at $103,000 on Monday, just $5,000 shy of its peak.
But there’s a catch.
“A deeper correction may follow,” they wrote in a note on Monday.
The analysts point to thinning volumes in both spot and derivatives markets ― declines of 29% and 36%, respectively, in the past month ― which suggests the rally lacks sufficient depth to sustain itself.
History repeats itself
A similar situation occurred during the 2021 Bitcoin rally, and the declining market volume spelled an end to Bitcoin’s price climb.
“The broader picture shows a market torn between momentum-driven optimism and some underlying structural weaknesses,” Illia Otychenko, lead analyst at CEX.IO, said.
“This combination of bullish signals and warning signs suggest that the coming weeks may be defined less by gradual continuation and more by sharp, decisive moves.”
The massive whale buying spree came as Bitcoin fell to $74,500 in early April. At the time, the market was reeling from US President Donald Trump’s trade war with major economies including China and Europe.
As tensions thawed, Bitcoin has climbed almost 40%, with whales driving the market momentum, CEX.IO analysts noted.
Adding to the bullish backdrop is market data that shows short-term holders are not largely in profit. As whales add more coins to their holdings, the market is primed for a surge.
The accumulation has caused Bitcoin’s realised capitalisation to rise significantly. Unlike market capitalisation, which moves with price, this metric tracks the specific price at which each Bitcoin last moved.
It’s used as a proxy to track actual capital flows into Bitcoin, and data from CryptoQuant says the metric is up 1.6% in the last week. That level of growth is significant because any notable uptick in realised capitalisation is due to a consistent flow of capital into Bitcoin, even as the price increases.
Most of that fresh capital came from wallets that hold between 100 and 1,000 Bitcoin. This suggests strategic accumulation from whales and institutional investors.
The accumulation comes amid growing optimism about Bitcoin’s price trajectory this quarter.
$120,000 price wen?
Utkarsh Ahuja, managing partner at Moon Pursuit Capital, a hedge fund and venture capital firm, told DL News that Bitcoin will probably reach $120,000 in early June.
Geoff Kendrick, digital assets research chief at UK bank Standard Chartered, also predicts Bitcoin will reach the same price mark before the end of this quarter.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him atosato@dlnews.com.
