Bitcoin whales have resumed accumulating coins in what has turned out to be the biggest Bitcoin accumulation event in 2021. A number of Bitcoin whales addresses that currently hold a number of 100 to 10,000 bitcoins in their wallet accumulated over 60,000 bitcoins in a single day.
Lately, Bitcoin has been sluggish in the market due to a high number of sell-offs and not enough people buying back in the coin. But over the past six weeks, the whale wallets have accumulated over 100k bitcoins. With over 60% of these Bitcoins being bought in just one day.
This accumulation event sent the coin price shooting up. This helped Bitcoin to break the $35,000 price point which it had been struggling to break since the crash from $64k began.
Imminent Bitcoin Squeeze?
No doubt that wealthy investors bringing their money back into the market are always a good thing. More money coming into the market is always the best way to get the price of assets up. But it also begs the question of the intentions of the Bitcoin whales for accumulating such a high amount of Bitcoin in the space of 24 hours.
A squeeze could be a plausible reason. Putting millions into the markets sees the prices shoot up. And when prices shoot up, whales can sell the coins that they got for a higher price.
Although with over nine million coins held across these whale wallets, it could be safe to think that these are not weak hands in the market just looking to make a quick buck.
A down market has always been a buying opportunity for whales, and it seems they are taking full advantage of the opportunity.
The Bitcoin market had succumbed to the massive FUD coming out of China with the Bitcoin mining bans and crypto trading bans. Furthermore, the announcement from Tesla CEO Elon Musk that the automaker would not be accepting Bitcoin anymore further helped to drive the coin price down. Musk had said the company would start accepting Bitcoin payments again when a milestone of 50% green Bitcoin mining was reached.
Retail investors have had to watch the coin price crash after an impressive run. And continue downward for what has been a couple of brutal months.
But now, it seems that faith is returning to the market.