7:00 a.m. ▪
3
min reading ▪ by
Fenelon L.
Multiple signals indicate that large institutional investors are strategically positioning themselves in Bitcoin, replicating a pattern observed before the historic bull rally at the end of 2020.
Frenzied Accumulation of Bitcoin Whales
In a Twitter post on May 31, Ki Young Ju, CEO of CryptoQuant, drew attention to the marked similarities between the recent activity observed on the Bitcoin network and the movements observed before the meteoric rise in prices at the end of 2020 .
Although volatility is currently moderate, the data reveals daily transactions of over $1 billion to whale wallets.
This frenetic pace of accumulation is reminiscent of the mid-2020 period, when Bitcoin hovered around $10,000 for six months, before beginning its dizzying run to record highs of $64,000 reached in April 2021.
According to Ki Young Ju, “ This feverish activity suggests that large institutional investors are positioning themselves for a new bull cycle.“
A historic precursor to a major bullish recovery?
Current market dynamics bear worrying similarities to those of 2020, as evidenced by CryptoQuant’s comparison chart. This match fuels speculation of an imminent return of Bitcoin’s long-term uptrend.
Some analysts express reservations, arguing about the gap between massive accumulation and price stagnation. Others nevertheless see the beginnings of a next major bullish rally. A massive influx of institutional capital into “whale” wallets is generally a bullish signal for the queen of cryptos.
In short, analysts expect Bitcoin to break the key resistance of $69,000 to record new all-time highs. With this wave of accumulation by major investors, which recalls the beginnings of the 2020-2021 rally, Bitcoin seems to be preparing for a new large-scale surge. History could well repeat itself for the main crypto.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
