Joseph Katala
Bitcoin whales, the heavyweights of the crypto world, have been making waves. The Whales have accumulated a staggering $3 billion worth of Bitcoin in January. In a tumultuous period marked by Fear, Uncertainty, and Doubt (FUD), they have emerged as formidable players. They are navigating the storm with finesse.
Data from on-chain analytics firm IntoTheBlock reveals a notable accumulation trend among Bitcoin whales. Wallets holding over 1,000 BTC have grown by approximately 76,000 BTC, now collectively housing about 7.8 million BTC. This accumulation comes after the introduction of spot exchange-traded funds (ETFs). In the United States, propelling BTC prices to heights exceeding $48,900.
Market volatility and price fluctuations
Bitcoin’s journey through January has been far from stable after reaching new highs with the debut of ETFs. The cryptocurrency faced a sharp downturn, with prices plummeting to around $38,500. Investors in the Grayscale Bitcoin Trust (GBTC) responded by withdrawing their funds, raising concerns in the market. However, some saw this as an opportunity to acquire Bitcoin at discounted prices through platforms like Bitfinex.
Also Read: Bitcoin’s January Performance Sets the Stage for a Promising February
As of the latest data, Bitcoin stands at $43,345.61, showing a 0.1% surge in the last hour and a 3.0% increase since the previous day. Over the past week, BTC has climbed by 8.4%. BTC’s fear and greed index presently stands at 61, reflecting market sentiment.
Bitcoin market overview
The global cryptocurrency market has a total valuation of $1.75 trillion, marking a 2.52% change in the last 24 hours and a significant 63.37% change over the last year. The market leader, Bitcoin, holds a market capitalization of $851 billion, representing 48.76% market dominance. Stablecoins account for $137 billion of the total crypto market cap, constituting 7.84%.
While Bitcoin whales have accumulated, crypto funds witnessed net withdrawals during the past week. Grayscale’s Bitcoin ETF (GBTC) saw a substantial $2.2 billion in net withdrawals, while newly introduced spot Bitcoin ETFs attracted only $1.8 billion in net inflows. This resulted in a net outflow of $500 million from the crypto market.
The ongoing Bitcoin price recovery aligns with the anticipation surrounding the Federal Open Market Committee (FOMC) meeting. Interestingly, GBTC outflows have begun to decelerate, with the fund experiencing its 12th consecutive day of outflows on Monday, January 29, amounting to $191.7 million.
Grayscale Bitcoin Trust held 496,573.8166 BTC as of January 29, 2024, with total Assets Under Management (AUM) approximately reaching $21.431 billion. After the approval of the spot ETF, Grayscale users offloaded a significant 120,500 BTC, equivalent to roughly $5.508 billion. Grayscale’s GBTC continues to lead in liquidity, with daily trading volumes exceeding $570 million, outpacing competitors.
Fidelity’s FBTC sees inflows surge
In contrast, Fidelity’s spot Bitcoin ETF, FBTC, achieved a milestone with $208 million in daily inflows on January 29, surpassing GBTC’s withdrawals for the first time since its launch. This shift in investor sentiment indicates a growing preference for Fidelity’s product.
The recent decrease in GBTC outflows signals a potential reduction in Bitcoin’s selling pressure. The most recent outflows show nearly a 25% drop from $255 million on January 26 and a substantial 70% decrease from the fund’s peak daily outflows of $641 million on January 22.
Despite market turbulence and uncertainty surrounding ETFs, Bitcoin whales have displayed confidence in the cryptocurrency. Their $3 billion accumulation in January is a testament to their belief in Bitcoin’s long-term potential. The reduction in GBTC outflows and increasing inflows into Fidelity’s FBTC suggest that selling pressure may be subsiding.
As the crypto market continues to evolve, investors are closely monitoring these developments to gauge the direction of Bitcoin and the broader cryptocurrency landscape. Amidst the challenges and fluctuations, Bitcoin whales remain a force to be reckoned with, shaping the market’s trajectory with their substantial holdings and strategic moves.
