Key Points
- Bitcoin whales accumulated over 22K BTC during the recent dip on January 28th.
- However, many Bitcoin whales with over 1K BTC have been selling off since mid-December.
Bitcoin whales, or large-scale holders of Bitcoin (BTC), significantly increased their holdings by over 22,000 BTC during the recent market dip on January 28th.
During this dip, the value of Bitcoin dropped to a low of $97.7K. This decrease in value was met with massive demand from Bitcoin whales, indicating a potential market bottom.
Whale Activity and Market Trends
However, it’s worth noting that many Bitcoin whales with holdings exceeding 1,000 BTC have been cashing out since mid-December. Data from Glassnode shows a 4% drop in these whale entities, from 1,724 to 1,655, indicating increased sell-offs in the past week.
The number of active Bitcoin addresses has also seen a decline since December, dropping from nearly 1.1 million to 957K. Yet, this metric seems to have bottomed out at 950K, suggesting that a renewed surge could signal increased market interest for Bitcoin.
Market Indicators and Future Outlook
Despite this potential for increased interest, demand for Bitcoin appears to be nearly flat at the moment. The Coinbase Premium Index (CPI), which tracks U.S. investors’ appetite for the world’s largest cryptocurrency, has remained muted throughout January.
Historically, Bitcoin has shown a sustained uptrend when the CPI remains positive for an extended period. Currently, the largest digital asset is fluctuating between $100K and $105K, ahead of key U.S. inflation data.
It’s important to note that the Federal Open Market Committee (FOMC) forward guidance and key U.S. inflation data could determine Bitcoin’s direction moving into February.