🚀 Crypto Whale Investments into Bitcoin Hit $100 Billion In 2024, Fueling Insane Investor Optimism

[Undefeated_Lamba]

In a notable development, data from analytics firm Cryptoquant reveals that whale investors poured a staggering $100 billion into Bitcoin in the first half of 2024.

This revelation, made on Friday by Julio Moreno, head of research at the firm, highlighted a significant trend of wealthy investors accumulating Bitcoin, likely through over-the-counter (OTC) deals, sidestepping conventional exchanges.

Notably, OTC deals, which facilitate direct transactions between parties, have become a preferred avenue for acquiring substantial amounts of Bitcoin, with notable entities like MicroStrategy engaging in such transactions to bolster their corporate treasury strategies.

Moreno’s disclosure coincides with observations from Ki Young Ju, the firm’s CEO, who drew parallels between current market dynamics and those of mid-2020 and in February 2019 when similar patterns of high on-chain activity preceded a remarkable surge in Bitcoin’s value reinforcing the notion of whale activity as a strong bullish indicator. Particularly, this year’s remarkable accumulation could be attributed to the green light given to several spot Bitcoin exchange-traded funds (ETFs) in January, opening avenues for traditional investors to dabble with crypto asset investments.

Moreover, data from the same firm also indicated a surge in Bitcoin accumulation addresses over the past month, reflecting growing investor interest despite stable prices.

“Despite stable prices and relatively modest growth compared to previous months, there has been a notable increase in the number of new participating accumulation addresses. This phenomenon indicates that even with Bitcoin experiencing price stability, investor sentiment remains bullish. More investors are eager to join the ranks of buyers and invest in Bitcoin,” the firm wrote

Meanwhile, Bitcoin’s price experienced consolidation towards the end of May, partly due to concerns regarding recent outflows from Mt. Gox addresses to a new wallet address in preparation for distribution. However, reassurances from Mt. Gox trustee Nobuaki Kobayashi regarding pending repayments have injected a semblance of stability into the market.

That said, against this backdrop, the crypto community anticipates a robust rally in the second half of the year. Analysts such as “Mags” point to historical precedents, suggesting that periods of sideways movement often precede significant price surges.

“[Bitcoin] broke out above the last monthly resistance in March and has since transformed that level into support…Last year, from March to September, the price remained stagnant for seven months before breaking out and surging by 178%. Therefore, despite the apparent monotony, this sort of sideways movement typically precedes a significant rally. If we witness a similar 178% surge upon breaking out of the current range, we could be looking at $188,000,” wrote Mags.

Elsewhere, “Crypto Caesar” proposed a target of $79,579 for Bitcoin based on an observed inverse head-and-shoulders pattern. According to his analysis, the price has broken above the neckline, and he is currently verifying it as a support level.

Bitcoin traded at $67,701 at press time, reflecting a 0.63% drop over the past 24 hours.