Bitcoin Whale Population Reaches Highest Tides Since January 2021

Key Takeaways

• Bitcoin whales have reached a three-year high, indicating growing interest and confidence.
• In contrast, retail investor activity has slowed down. 
• Whales’ continued accumulation of Bitcoin suggests a positive outlook for the long-term price. 

Bitcoin whales —wallets holding 1,000 or more BTC—have been on the rise this year.

The rising population has fueled speculation that Bitcoin is preparing to break free from its recent price doldrums and possibly hit a new all-time high.

Bitcoin Whales Reach Three-Year High

According to data from Glassnode , the number of Bitcoin whales has surged to 1,678, the highest level since January 2021.

Over the past month, whales accumulated a staggering 173,000 Bitcoins ($11.7 billion).

Bitcoin whale addresses increased to the highest level since January 2021. | Credit: André Dragosh

In stark contrast, retail investor activity slowed to a crawl, with only 1,000 BTC ($67 million) during the same period and just 30,000 BTC ($2 billion) this year—a historically low accumulation rate.

This is despite Bitcoin’s price remaining relatively stable despite brief upticks and downward pressure from rising U.S. Treasury yields and a strengthening dollar.

At the time of writing, BTC was worth $67,361.27.

Whales’ Bitcoin Accumulation Points to Long-Term Gains

Bitcoin’s recent price volatility has not deterred whales from amassing a staggering 1.5 million BTC , worth $100.8 billion, over the past six months

As one X user quipped , “Whales are ready to welcome FOMO by dumb money.”

The data supports this optimism, with a surge in new whale wallets holding Bitcoin for less than 155 days, reaching a record high of 1.97 million BTC.

This influx of new capital has fueled a remarkable 813% year-to-date surge in the balance of these non-miner, potentially custodial wallets, now valued at $132 billion.

The significance of this trend cannot be overstated, as it represents 9.3% of the total Bitcoin supply.

While this whale activity bodes well for Bitcoin’s long-term prospects, there are caveats to consider.

Long-term holders and miners may introduce resistance to price increases as they stabilize their positions or take profits.

Miners, in particular, may adjust their payment periods to coincide with price peaks, which could temper price growth.

However, the accumulation of Bitcoin by short-term holders suggests that the market can absorb potential selling pressure, tempering concerns of a sharp price correction.

Whale Activity

Whale activity often raises concerns about price manipulation, given their ability to influence market conditions with large trades.

On the other hand, their accumulation of Bitcoin often signals confidence and can drive prices higher by decreasing supply.

Whale activity also often indicates broader market cycles, with increased buying hinting at potential market bottoms and upcoming bullish phases.

During bear markets or corrections, whales may accumulate Bitcoin, hinting at a potential market bottom and an upcoming bullish phase.

Conversely, when they begin to sell, it may indicate a market peak or the start of a correction, influencing smaller investors’ decisions.