Whales Are Accumulating Bitcoin (BTC) and Most Are Bringing It to the USA
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Loading... - Akila Salah
- 29 Jan 2025
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Recent trends indicate that Bitcoin (BTC) whales are accumulating more of the cryptocurrency, primarily through over-the-counter (OTC) deals, as exchange reserves approach all-time lows. This accumulation is particularly notable among US-based investors, who are increasingly holding a larger share of Bitcoin.
Following a recent market correction, Bitcoin has seen a significant flow back into whale wallets. While retail buyers remain active, data suggests that whales are strategically buying back BTC. As of now, Bitcoin is trading around $101,180.00, with concerns that it may dip below the $100,000 mark.
In the latest accumulation phase, over 20,000 BTC has flowed back into known whale addresses, which are typically associated with accumulation strategies. According to Cryptoquant data, this accumulation has occurred over several days, indicating a deliberate buying plan. Accumulation addresses are defined as those receiving two consecutive inflow transactions that are not considered "dust" and have not spent their reserves. The inflows into these addresses have been increasing daily, with occasional spikes in buying activity.
The current sideways movement of BTC around the $100,000 mark mirrors conditions seen in the summer of 2024, when whales capitalized on panicking traders. However, this time, the accumulation appears more active, with almost daily inflows into accumulation addresses. Collectively, these addresses now hold over $2.7 billion in Bitcoin. While this metric may not be entirely precise—encompassing miners, whales, and retail investors—the trend reflects a growing demand for self-custodial Bitcoin ownership.
Notably, there has been a rapid increase in wallets holding over 100 BTC, with nearly 2,000 new addresses created in January alone. Conversely, the number of wallets holding over 10,000 BTC is gradually decreasing, suggesting a shift towards smaller wallets.
Despite the current market volatility, which is heightened by the upcoming monthly futures expiration event, whales continue to buy during favorable price dips. This accumulation behavior aligns with the Rainbow chart stage, indicating that the Bitcoin rally may not be over yet.
Bitcoin Buyers Are ‘Made in USA’
The recent accumulation trend highlights a growing optimism for cryptocurrency in the USA. With significant capital available and expectations of a sustained bull market, Bitcoin is increasingly becoming a US-owned asset. The total market capitalization of US-based cryptocurrencies has now surpassed $529 billion.
The ownership ratio of Bitcoin in the USA compared to the rest of the world is at its highest level since before the 2022 market crash, currently standing at 1.61. This is a notable increase from the peak of 1.86 in 2022, when this metric began being tracked.
The high accumulation among US investors correlates with peak trading activity during US market hours. Historically, elevated ownership ratios have been associated with previous bull markets, where Bitcoin became less accessible to those without sufficient liquidity.
Retail demand in the US is evident through constant inflows from dollar-based purchases, as shown by Fiatleak. However, the primary drivers of demand include daily ETF buying and the accumulation of corporate treasuries. Additionally, discussions around a government strategic reserve have bolstered confidence in Bitcoin among US investors. The US government currently holds over $20 billion in Bitcoin, despite ongoing discussions about selling its holdings.
US-based demand is also reflected in the distribution of Bitcoin nodes, with over 26% of all node operators located in the USA, encompassing both personal nodes and cloud-based data centers. This buying activity occurs alongside the US dollar's role as a key trading pair for Bitcoin, with more than 25% of all BTC trading occurring in direct pairings with the US dollar, indicating robust activity on centralized exchanges.
As whales continue to accumulate Bitcoin and US-based investors increase their holdings, the landscape for Bitcoin trading and ownership is evolving, potentially setting the stage for future market movements.
