According to cryptocurrency analysts, Bitcoin continues to maintain the highest level of accumulation despite recent price fluctuations.
After a week of minimal price volatility, Bitcoin (BTC) has increased by 0.5%, maintaining a sideways pattern between $51,000 and $52,500. However, despite this period of minimal volatility, Bitcoin investors still maintain a high level of accumulation, according to cryptocurrency analyst Ali Martinez.
Interesting to note is that blockchain data analytics firm Santiment recently provided some insightful information on this trend.
In a post on February 23, Santiment reports that there have been 147 new Bitcoin whale wallets with 1000 BTC+ in the past month, indicating a 7.4% increase. The analytics company also noted that whale wallets holding 1-1000 BTC and retail investors holding less than 1BTC only decreased by 0.1% and 1.0% respectively over the same period.
Behind the high accumulation level of Bitcoin
There is no doubt anymore that the above-reported figures indicate a high level of confidence from investors in this leading asset. However, what could be driving this optimism?
One key factor contributing to the current high level of Bitcoin purchases is the consistent growth in the Bitcoin ETF market. According to market tracker BitMEX Research, Bitcoin Spot ETF funds recorded negative flows only once in the past four weeks.
The future price of Bitcoin
Especially as most analysts predict that the development of Bitcoin Spot ETFs will lead to a large demand for the underlying asset, potentially helping drive the price up to $150,000.
Furthermore, the Bitcoin Halving event, which many eagerly anticipate, is another potential catalyst for strong whale activity.
More importantly, the Halving event typically occurs a few months before the price increase cycle, during which the value of BTC can increase by 8-10 times its current value based on historical data. Therefore, many investors may be preparing to capitalize on the expected gains.
At the time of writing, the price of Bitcoin is currently trading at $51,390 and has grown 0.25% in the past 24 hours.
