Bitcoin (BTC) whales — cryptospeak for holders of large quantities of digital assets — have cashed-in on the recent market correction.
Market data shows that, on Nov. 26, Bitcoin corrected from its all-time high of nearly $100,000 down to under $91,000. Pseudonymous crypto market analyst Caueconomy wrote in a recent post on market intelligence platform CryptoQuant:
“On Tuesday, almost 16,000 [Bitcoin] entered whale reserves, a number that continued to increase yesterday, corresponding to almost US$1.5 billion in on-chain accumulation.”
Still, Caueconomy also admitted that “this spot buying volume has not yet been sufficient to demonstrate a more widespread ‘buy-the-dip’ pattern, remaining heavily concentrated among institutional players.” He suggests that market participants will have to wait for larger spot Bitcoin acquisition volume with retail and institutional participation to achieve a new all-time high.
Market dynamics
Whales are an important component of the Bitcoin market dynamic. For instance, back in late April, Bitcoin surging past the $67,000 resistance was largely attributed to whale pressure.
Bitcoin and other digital assets have been rallying almost nonstop ever since Republican candidate Donald Trump was elected president of the United States. In fact, Dan Morehead, the CEO of venture capital firm Pantera Capital, has recently suggested that Bitcoin still has much room for growth and might hit $740,000 by 2028. He wrote in a note to investors:
“Even after eleven years, Bitcoin is **still** squeezing up like a watermelon seed. […] Blockchain’s 15-year regulatory headwinds are now turning into tailwinds.”
Following the election of the pro-crypto candidate who promised the creation of a strategic national Bitcoin fund, a Brazilian Congressman proposed for the nation to create its own Bitcoin reserve. The example was then followed by Ken Sim — the mayor of Vancouver — who proposed adding Bitcoin to the local government’s reserves earlier this week.
The market itself also took notice, with U.S. Bitcoin spot exchange-traded fund (ETF) net assets under management recently breaking $100 billion for the first time.
