Bitcoin, the pioneer cryptocurrency, started the year 2024 on a high note, surging by a staggering 73% in the first quarter to hit a new all-time high price of $73,750. Despite a subsequent correction from this peak due to volatile price movements, major BTC stakeholders have continued to show a consistent pattern of accumulation in the initial three months of the year. The data suggests a strong belief in the asset’s potential profitability, especially in anticipation of the upcoming halving event.
A recent report by blockchain analytics platform Santiment revealed that Bitcoin whales, defined as holders of 100-100,000 BTC, have been actively increasing their holdings. These whales collectively acquired a total of 319,310 BTC, equivalent to $21.6 billion, during the first quarter of 2024. Interestingly, a significant portion of these newly acquired tokens came at the expense of retail traders holding 0-100 BTC. The retail traders offloaded 105,260 BTC, valued at $7.2 billion, which represents 0.7% of Bitcoin’s circulating supply in the same timeframe.
The increase in market share by BTC whales, amounting to 1.4% in the last three months, is viewed as a positive indicator leading up to the highly anticipated Bitcoin halving scheduled for April 19. The halving event, occurring every four years, involves cutting the rewards for miners on the Bitcoin blockchain by half. This scarcity mechanism typically leads to increased demand and long-term price appreciation for Bitcoin. The heightened accumulation by whales before the halving is seen as a bullish sign, signaling confidence in the future valuation of the digital asset.
As of the most recent data from CoinMarketCap, Bitcoin is trading at $67,521, reflecting minor fluctuations of 0.01% and 3.51% in the last 24 hours and seven days, respectively. The daily trading volume for BTC has decreased by 6.80%, amounting to $32.35 million. Nevertheless, Bitcoin has seen a 6.43% gain on its monthly chart, contributing to an impressive year-to-date increase of 140.65%. With a market capitalization of $1.33 trillion, Bitcoin maintains its position as the largest digital asset globally.
The recent trends in Bitcoin accumulation by whales, along with the impending halving event, have brought about a sense of optimism among the cryptocurrency community. The continued confidence in Bitcoin’s long-term growth prospects is evident in the actions of major stakeholders. As investors navigate through the ever-evolving landscape of the digital asset market, conducting thorough research and exercising caution remains crucial. The journey of Bitcoin, with all its ups and downs, continues to captivate the financial world, as the decentralized revolution marches forward into the future.