Bitcoin whales have been actively accumulating substantial amounts of the cryptocurrency amid the recent market downturn. According to on-chain activity data, over 404,448 BTC worth approximately $22.8 billion has been transferred to permanent holder addresses in the last 30 days. This significant movement of BTC to long-term holder wallets suggests a strong accumulation phase within the market.
CryptoQuant’s CEO, Ki Young Ju, pointed out the increase in 30-day demand change for permanent BTC holders in late July, indicating a clear trend of accumulation among whales. He also highlighted the inflow of 53,000 BTC from global spot ETFs in the same month, further supporting the notion of large entities accumulating BTC. Ki Young Ju cautioned retail investors about potential regrets for not buying during the current uncertainty, which includes concerns over possible sell-offs by the German government, Mt. Gox trustee, and broader macroeconomic factors.
Bullish and Bearish Factors in the Market
Ki Young Ju identified several bullish factors supporting the current market conditions, such as the recovery of hashrate indicating the end of miner capitulation and U.S. mining costs stabilizing around $43,000 per BTC. Moreover, the absence of retail investors and the transfer of holdings from old whales to new whales have reduced selling pressure from long-term holders. On the other hand, there are bearish factors to consider, including macro risks leading to forced sell-offs and on-chain indicators showing borderline bearish trends. If these negative trends persist, market recovery could face challenges in the future.
Ki Young Ju maintained a cautiously optimistic outlook on the market, stating that the bull market is still intact based on current data. He emphasized the importance of monitoring the market closely and reassessing the situation if the market does not recover within two weeks. Ki mentioned that he follows “smart money” and that any miscalculation on his part could indicate a misunderstanding or underestimation of the macroeconomic environment by new whales entering the market.