In a recent development, Bitcoin (BTC) whales have been aggressively accumulating, leading to a surge in transactions surpassing the $100,000 threshold. This marks a new high for the year and indicates significant activity among larger investors in the cryptocurrency space.
According to data from the blockchain analytics company IntoTheBlock, there was a notable increase in Bitcoin transactions last week, with the number of transactions involving at least $100,000 worth of Bitcoin hitting a peak for the year at 23,400. This spike in activity coincided with Bitcoin’s price reaching $35,000, a value it had not seen since May 2022. Glassnode also reported an increase in on-chain activity.
A Spike in Bitcoin Transactions Over $100,000
The surge in applications for Bitcoin spot ETFs appears to have piqued the interest of large-scale investors and institutions. There was a significant uptick in transactions exceeding $100,000 towards the end of June when Blackrock’s ETF was launched. As Bitcoin continues to reach new price heights unseen in a year, this trend shows no signs of slowing down.
The recent increase in large-scale Bitcoin transactions could be indicative of future trends leading into 2024. It is widely expected that the U.S. SEC will give the green light to several spot-based exchange-traded funds (ETFs) in the early part of next year. Market analysts think that the launch of these Bitcoin ETFs could propel Bitcoin’s market value to exceed $42,000.
Despite the current sideways trading around $34,000, Bitcoin boasts a 107% year-to-date gain, with a 27% surge this month. The ratio of Bitcoin’s market value to its realized value, also known as the MVRV ratio, suggests that Bitcoin is not currently as overvalued as it has been during previous bull market periods.
Historically, Bitcoin bull markets have peaked at 300%+ MVRV, which, when compared to the current 150% figure, indicates that the bull market has room to run even farther.
Data derived from blockchain transactions reveals a marked uptick in the engagement of large-scale investors, often referred to as ‘whales’, in the Floki Inu and Pepe coin markets. These two digital currencies have been subject to increased price fluctuations following their breach of key resistance levels every month.
In conclusion, the aggressive accumulation by Bitcoin whales signals an optimistic outlook for the cryptocurrency. As institutional interest continues to grow and regulatory developments unfold, the future of Bitcoin looks promising.
