In recent developments, Bitcoin’s onchain activity has shown signs of significant activity from “whales”, the term used for investors with substantial capital who often have the power to sway market directions. This comes in light of Bitcoin’s surge past the $35,000 benchmark.
The Bitcoin blockchain witnessed a spike in its number of transactions, especially those involving over $100,000 worth of Bitcoin (BTC). Last week, these large transactions reached a year-to-date record of 23,400, as per analytics data from IntoTheBlock.
Accompanying this rise in whale activity, Bitcoin’s price also soared, hitting its peak in May 2022, settling at over $35,000. Even though it has now slightly leveled to around $34,000, Bitcoin’s year-to-date growth is an impressive 107%. A potential catalyst for this surge could be the increasing optimism around spot ETFs and Bitcoin being perceived as a safe haven.
IntoTheBlock, in its recent newsletter, pointed out the potential correlation between Bitcoin’s price and institutional interest. The report highlighted that large transactions had previously seen a boost after Blackrock filed its ETF, and the current increase could be a precursor to trends expected in 2024.
The anticipation is building around the U.S. Securities and Exchange Commission (SEC) possibly giving the green light to several spot-based exchange-traded funds (ETFs) in the coming year. Market analysts predict that this move towards BTC’s financialization via ETFs could propel its market value even further, possibly crossing the $42,000 mark.
However, the activity isn’t just limited to the big players. Retail investors, or smaller individual traders, have also shown increasing activity on the blockchain. Deutsche Digital Assets recorded that the onchain activity index for these smaller entities touched a new high last week, reaching 1.5.
André Dragosch from Deutsche Digital Assets commented on this uptick in activity, indicating that not only whales but also smaller investors are delving deeper into the market. The Bitcoin blockchain has seen an upsurge in median transfer volumes, which often indicates participation from these smaller investors.
Dragosch emphasized the importance of these retail investors in the cryptocurrency market, suggesting that their participation is crucial for maintaining a robust and prolonged bull market in cryptocurrencies.
Via: 2Usethebitcoin.com
