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Data show that the cryptocurrency market has seen significant growth in large holders of Bitcoin, or “whales,” which has not been observed since January 2021. This increase may signal a possible price rise in Bitcoin.
Recent data from Glassnode reveals that the count of entities holding at least 1,000 BTC has climbed to 1,678. This group of investors is pivotal within the market due to their substantial buying power, which can considerably sway market liquidity and price direction. André Dragosch, the head of research for Europe at Bitwise, notes that such accumulations are often considered solid indicators of bullish market sentiment.
This phenomenon coincides with a slowdown in retail investor activity, which contrasts sharply with the aggressive accumulation by larger investors. Over the current year, retail investors have added a comparatively modest 30,000 BTC to their holdings, starkly overshadowed by the 173,000 BTC acquisition by larger entities. This disparity underscores a growing confidence among major investors despite a broader deceleration in smaller-scale buying.
The price of Bitcoin has been moving in an approximate range of $67,000 and remains almost within a 10% range of its record high. It briefly rose above $69,000 while facing a strengthening U.S. dollar and rising Treasury yields. However, some experts expect Bitcoin to rise further, citing option trading on platforms such as Deribit, which point to targets of $80,000-$100,000 by year-end.
Moreover, Bitcoin derivatives markets are also showing unprecedented trading activity. As of October 21, the value of open interest in Bitcoin futures had hit a record high of $40.5 billion. According to Skew data, the Chicago Mercantile Exchange (CME) has the largest BTC futures market share at 30.7 percent. This kind of increase in open interest is significant, as it marks increased market activity and higher interest from investors who drive price change and an increase in market volatility.
