The number of unique addresses holding at least 1,000 Bitcoin, also known as “whales,” has increased to 2,104 since March 7th. Yet, this figure remains lower than the record of 2,489 addresses achieved in February 2021, when Bitcoin traded at $46,000.
This rise in wallet count could be attributed to the launch of US Bitcoin ETF spot funds, which surpassed a cumulative trading volume of $52.5 billion on March 4th. The decision of these Bitcoin whales not to sell their holdings at this level indicates their anticipation of further price increases. Bitcoin whales are crucial as their trading volumes can significantly impact prices.
Julio Moreno, head of research at CryptoQuant, noted a surge in whale Bitcoin holdings, describing it as following a parabolic trajectory. Glassnode data also suggests that the transfer of funds from exchanges to whales has been following a similar parabolic trend, reaching new record highs this month.
Meanwhile, the volume transferred from whales to exchanges has seen modest increases compared to previous market cycles. Overall, these metrics indicate a large influx of new investors into Bitcoin, with few signs of profit-taking from wealthy investors despite BTC reaching record highs.
At a fundamental level, US Bitcoin ETF spot funds continue to drive demand for BTC. For instance, BlackRock’s iShares Bitcoin Trust (IBIT) recorded its highest daily inflow of $788 million on March 5th.
Bitcoin’s next major target could be around $92,500, based on a combination of technical, on-chain, and fundamental indicators. Notably, recent Bitcoin charts have formed a triangle pattern resembling a bullish flag, which many interpret as a continuation pattern for price uptrend.