BTC whale activity and spot Bitcoin ETFs

Following the highly anticipated approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the United States Securities and Exchange Commission (U.S SEC), BTC whale activity has increased dramatically in 2024. 

Bitcoin has garnered remarkable attention from cryptocurrency investors in recent months. This is pronounced in the aggressive accumulation of BTC by whale investors. 

Rising BTC Whale Activity

According to data shared by the leading behaviour analysis platform Santiment, Bitcoin’s whale activity recently spiked to the highest level since June 2022. Exactly 34,874 BTC transactions valued at over $100,000 each were conducted on January 3 & 4, 2024 cumulatively per the Saturday update.

As mentioned above, the recent BTC activity is the most whale transaction count recorded since June 11 & 12, 2022 combined for 39,033 Bitcoin transactions valued above $100,000 each. 

Notably, the massive accumulation of the largest cryptocurrency by market capitalization seven months ago occurred after BTC dipped below $20,000. Thus, deep-pocketed investors aggressively bought the dip and are now counting gains as BTC is trading above $44,000 at press time.

In particular, blockchain analytics platform IntoTheBlock disclosed that over 80% of Bitcoin addresses entered profit since BTC crossed $41,000. 

Meanwhile, the latest spike in BTC’s whale activity comes amid the expectation of spot Bitcoin ETF approval by the U.S SEC. Also, the anticipation of the fourth Bitcoin halving event expected in April 2024, has contributed immensely to the heightened bullish sentiments on BTC. 

Spot Bitcoin ETFs and BTC price 

Spot Bitcoin ETFs have become a hot topic in the crypto community given their potential to impact the price of BTC and altcoins. At press time, the SEC is yet to conclude on these ETF applications submitted by several global asset managers including BlackRock, Fidelity Investment, Bitwise, etc. 

However, the regulatory agency is expected to complete assessments and issue its final stance on these ETF applications in the coming months. Crypto investors predict the price of BTC to moon if the SEC gives spot Bitcoin ETFs the go-ahead. 

On the other hand, the price of the leading crypto asset could dip if the SEC disapproves of the proposed investment vehicle. This scenario played out on Wednesday when BTC fell from the day’s high of $45,500 to $40,750 within hours before rebounding. The sharp price crash occurred after Matrixport predicted that all spot Bitcoin ETF applications could be rejected by the SEC. 

Besides an outright rejection scenario, BTC price could plummet if the highly anticipated elevated institutional demand for Bitcoin fails to arise upon a likely approval of spot Bitcoin ETFs.

Moreover, market participants should also consider a “sell the news” event occurring if the SEC decides to give these ETFs a nod. Already, the “buy the rumour” event is in play, as reflected in the surging Bitcoin whale activity.¬†

Read Also: Why Crypto Asset Prices are Set To Skyrocket in 2024

Investors remain bullish on BTC and Altcoins

It bears mentioning that the anticipation of these ETFs has massively supported BTC price growth, pushing it near $46,000 on January 2, 2024. Per Coingecko data, BTC price stands at $44,260 at press time, up 1% and 4% in the past 24 hours and seven days respectively. 

Several altcoins and memecoins have also benefited from the ETF-inspired positive market sentiments. As reported by Nitadel, Cardano whales recently accumulated a whopping 14 million ADA in two weeks, with proponents of the ninth-largest cryptocurrency hoping to see ADA hit $1 pre-bitcoin halving. 

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