Bitcoin (BTC) permanent holders increase their balances by 358,000 BTC in a strong commitment to current price levels.
The latest CryptoQuant market data shows that BTC whales are “clearly accumulating” as the crypto’s price keeps trading below all-time highs. In a July 24 X post, CEO Ki Young Ju said the flow of coins to whale investors is “unprecedented.”
Bitcoin Whales Add 358K BTC In July
Bitcoin’s “permanent holders” keep acquiring lots of coins at current BTC price levels. Analyzing the 30-day rolling balance change for permanent holder addresses, Ki highlighted a wealth transfer arguably unlike anything that has ever been seen in the history of the crypto market. He summarized:
“Bitcoin is in an accumulation phase. Over the past month, 358K BTC has moved to permanent holder addresses.”
These purchases, equal to nearly $23 billion at the time of publication on July 24, beat everything else in BTC terms, including when Bitcoin hit its all-time high of $73,800 in March.
Based on previous reports, Bitcoin’s long-term holders, the entities that hold an amount of BTC for 155 days or more, have majorly refused to sell in 2024, irrespective of near-term price trends. Furthermore, Ki highlighted the current success of the spot Bitcoin exchange-traded funds (ETFs) as channels for institutional Bitcoin exposure. He noted:
“In July, global spot ETF inflows were 53K BTC.”
The biggest such ETF in the US topped $500 million in inflows in one day this week. Concurrently, nonetheless, analysis warned that such huge tallies have seemed to precede periods of corrective Bitcoin price behavior.
The week’s launch of spot Ether ETFs also clouded this narrative, with crypto markets seeing a marked come-down on their second day of trading.
Whales ‘Furiously Accumulating’
When it comes to long-term accumulation trends, Ki is optimistic. He concluded:
“Though not all remaining BTC is in custody wallets, whales are accumulating. And it’s an unprecedented level.”
Others joined him, including a famous trader and social media commentator Bitcoin Munger, who uploaded data to X showing the biggest whale group “furiously accumulating.”
Nonetheless, only the smallest class of BTC holders, with 1 BTC or less, is going the opposite way.
Bitcoin Drop Below $65K Is Not Due To Mt. Gox Sell-Off
There might be seasonal, political, and other reasons why Bitcoin has dropped below $65,000, but Mt. Gox Bitcoin sales are not one of them, according to analysts.
Bitcoin’s drop below the $65,000 mark for the first time in six days might be due to a market sentiment drop and seasonal trends instead of Mt. Gox creditors selling Bitcoin.
CryptoQuant founder Ki Young Ju commented in a July 24 X post:
“The instant dump you worried about didn’t occur. Any price drop would be likely due to market sentiment, not Mt. Gox selling. After the Mt. Gox creditors’ repayment, all global time zones have passed.”
Crypto trader “Roman,” told reporters:
“I think that’s FUD. It always has been.”
Bitcoin’s plunge below $65,000 came after recent trader speculation that it might be forming strong support at that price zone. The drop represented a 2.5% decrease within 24 hours, wiping out around $24.68 million in long positions, based on CoinGlass data.
Currently, the crypto is at risk of plunging below the next notable support around $60,000, according to CoinMarketCap data.
Why Did Bitcoin Drop?
Based on several analysts, the recent price drop might have been influenced by seasonal factors, the spot Ether ETF launch, and some political factors.
Timothy Peterson, Cane Island Alternative Advisors founder, linked Bitcoin’s underperformance to this time of year, which historically sees weak performance. He said:
“Our research indicates a consistent trend of underperformance from July 22 to Sept. 22. Bitcoin’s seasonal pattern occurs slightly later in the year and is the set-up for the frequently occurring “Uptober” that follows.”
In the meantime, Capriole Investments founder Charles Edwards alleged that the launch of spot Ether exchange-traded funds (ETFs) on July 23 may also be affecting market sentiment. Edwards wrote in a July 24 X post:
“The whole market would have been better if the ETH ETF launch wasn’t in 2024. The ETH ETF launch has been bad for BTC and ETH. ETH has been languishing this entire cycle, and now it’s muddied the waters at the institutional level with the ETF launch.”
Nevertheless, pseudonymous crypto trader Roman said that the drop is only a correction after Bitcoin surged after the assassination attempt on former US President Donald Trump. He commented:
“This pump was artificial, coming straight from the news that Trump’s assassination attempt failed + soon after swing states had him winning by several points. Although the market is pumped, news-based moves often retrace quite a bit.”
But, general sentiment remains highly bullish, according to the Crypto Fear & Greed Index. The indicator, which tracks market sentiment toward Bitcoin and crypto, reads a ‘Greed’ score of 68, up seven points in the last week.
