Recent data on Bitcoin’s on-chain activity indicates that big investors, often referred to as “whales,” are making their presence felt as the cryptocurrency surged beyond the $35,000 mark.
Last week, the number of transactions involving movements of at least $100,000 worth of BTC on the Bitcoin blockchain hit a yearly high of 23,400, as reported by blockchain analytics firm IntoTheBlock.
The cryptocurrency’s price climbed past $35,000, reaching its highest point since May 2022, according to CoinDesk data. Although Bitcoin has been trading sideways at around $34,000 recently, it still boasts a remarkable year-to-date gain of 107%. This month alone, prices have surged by 27%, buoyed by growing optimism surrounding spot ETFs and increased demand as a safe haven asset.
IntoTheBlock noted in a recent newsletter, “The bitcoin spot ETF applications appear to have increased whales’ and institutions’ appetite for bitcoin. Transactions of over $100k had previously spiked in late June after Blackrock’s ETF filing and have now surpassed that level as Bitcoin sets new yearly highs.”
They also added, “The recent rise in institutional activity might be a harbinger for what comes in 2024.”
Market analysts widely anticipate that the U.S. Securities and Exchange Commission (SEC) will approve several spot-based exchange-traded funds (ETFs) in the early part of the next year. This financialization of BTC through ETFs is expected to drive the cryptocurrency’s market value to $42,000 and potentially higher.
Retail investors are not left behind in the action. Data from Deutsche Digital Assets reveals that the onchain activity index for small entities, which measures retail investor activity, reached a new yearly high of 1.5 last week.
André Dragosch, the head of research at Deutsche Digital Assets, remarked, “We saw increasing activity in both small and large BTC wallet entities, indicating that smaller investors are increasingly entering the market.” This trend is further evidenced by a notable uptick in the median value of transfer volumes on the Bitcoin blockchain, a sign of heightened participation from small investors.
Dragosch added, “Note that (new) small investor participation is a necessary condition for a sustained bull market in crypto assets.”