Bitcoin has been the source of most of the crypto market's hype in 2024, especially with the recent ETF approvals, and the upcoming halving slated for April this year.
This attention has been so profound that so far, the whales have stacked a whopping $3 billion worth of BTC in January alone, according to data from IntoTheBlock.
The January launch of the first spot ETFs in the United States was one of the biggest contributing factors to the surge in demand for Bitcoin among the whales.
The crypto community welcomed the idea of ETFs in general, believing it to be a sign of massive institutional interest in the cryptocurrency
According to a recent tweet from Eric Balchunas, a senior ETF analyst at Bloomberg, despite the massive selling spree from Grayscale investors last week, the ETFs alone have garnered a total of about $820 million in the first month since launch.
So far, these ETFs have added some degree of volatility to the price of BTC, which hit a new monthly high of $48,900 on 11 January, after a false announcement of an ETF approval hit the internet.
The rally turned out to be short-lived, and the ETFs have been largely hindered by the strong selling of the Grayscale Bitcoin Trust (GBTC).
However, BTC has remained relatively stable, and the whales have taken every opportunity to buy the cryptocurrency at a discount.
As mentioned earlier, the whales have also been spending time amassing additional coins, whenever Bitcoin dips.
They also had several opportunities to do so amid the GBTC sell-off, and the following decline in the price of the cryptocurrency.
According to a recent tweet from IntoTheBlock, the BTC whales have increased their $BTC holdings by around $3 billion ( or about 76,000 BTC) since the start of this year.
The whale activity, represented by the blue line in the chart below, appears to have a positive correlation with the bitcoin price, represented by the black line.
In essence, we can conclude that when the whales buy more, the price tends to go up, and vice versa.
According to data from CoinMarketCap, BTC is currently down by around 1.14% over the last day, while registering a small 3.45 dip over the last week.
The cryptocurrency currently trades at around $41,900 and has lost its footing above $42,000 for the second time in the last two weeks.
In the charts, BTC broke above the 20-day EMA in its initial march towards $42,300.
However, the cryptocurrency has reversed for a retest of this moving average and is now on the verge of another drop to $40,000.
The bears might have the full chance to take control of the market if we see a break below $41,931 where the 20-day EMA currently sits.
However, overall, the RSI on the daily chart still shows neutrality, indicating that the bulls might still be able to pull off a rally to $45,000 or even higher in the coming days.
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