Despite recent price fluctuations, large Bitcoin holders, often referred to as “whales,” have been increasing their BTC holdings. Data from crypto analytics firm IntoTheBlock revealed that addresses holding at least 0.1% of the total Bitcoin supply, equivalent to over $500 million, and added $1.5 billion to their holdings in the last two weeks of August. This increase in accumulation occurred even as inflows into centralized exchanges were near zero, indicating that the buying demand is organic and not merely funds moving to exchange addresses for selling.
Lucas Outumuro, the head of research at IntoTheBlock, noted that this buying activity suggests a level of optimism among institutional investors, particularly as it happened during a period of weakness in Bitcoin’s price. The cryptocurrency’s price dropped to below $26,000, its lowest since June, after declining more than 10% on August 17. Despite this drop, the accumulation of whales continued, signaling their long-term bullish outlook.
This uptick in buying also coincided with a significant legal victory for asset manager Grayscale in its quest to list a spot Bitcoin exchange-traded fund (ETF) in the United States. A federal appeals court recently ordered the U.S. Securities and Exchange Commission (SEC) to review its previous denial to convert Grayscale’s $14 billion Bitcoin Trust into a spot Bitcoin ETF. This decision is considered a step forward toward making Bitcoin more accessible to a broader range of investors.
However, despite the brief rally following Grayscale’s court win, Bitcoin’s price slid back to below $26,000 as of Friday. Yet, the consistent accumulation of Bitcoin by large investors suggests that they are increasingly optimistic, especially as regulatory decisions on Bitcoin ETFs loom on the horizon.