Key Points
- Bitcoin’s recent surge towards its all-time high is attributed to significant accumulation by large-scale investors.
- Increased institutional demand and potential regulatory changes are driving the Bitcoin price rally.
Bitcoin is inching closer to its record high, surpassing $92,000, thanks to substantial accumulation by major investors or ‘whales’.
Whale Accumulation Fuels Bitcoin Rise
On Monday, November 18, large Bitcoin (BTC) addresses noted a net inflow of 21,470 BTC, as per data from IntoTheBlock.
Whale transactions, each valued at least $100,000 in BTC, also saw a significant increase, doubling to $78.37 billion in nearly 23,000 unique transactions on the same day.
Over the past week, Bitcoin recorded over $228 billion in whale transactions.
One of the top Bitcoin holders made a substantial purchase on Binance, moving the asset to a custodial wallet with $2.2 billion in BTC, according to Arkham Intelligence data.
Market Reactions and Predictions
The surge in whale activity often induces a fear of missing out (FOMO) among market participants, bringing high volatility to the cryptocurrency sector.
This can create mixed signals in the market as investors aim for the $100,000 mark.
Bernstein Research has revised its Bitcoin price rally forecast, raising it from $150,000 to $200,000 by 2025.
The firm attributes this optimistic projection to the expectations of regulatory changes and increased institutional demand.
Bitcoin is currently trading at $91,800, boasting a market cap of $1.82 trillion.
Also, the number of daily active Bitcoin addresses has risen by 13%, hitting 818,910 wallets.
This suggests that retail investors are becoming more active on the blockchain, with daily trading volume increasing by 63% to $75.2 billion.
MicroStrategy, a leading U.S. business intelligence firm, added 51,780 BTC, valued at $4.6 billion, to its reserves.
The firm now holds over 331,200 BTC and has announced plans to raise $1.75 billion through the private offering of convertible senior notes for further Bitcoin purchases.
This new wave of institutional adoption could spark FOMO among retail investors, potentially helping Bitcoin break the $100,000 barrier.
However, the Federal Reserve’s hawkish stance, which may lead to increased interest rates, could alter the market direction and impact Bitcoin’s price.