FameEX Hot Topics | Analyst: Bitcoin Whales Have Purchased 34K BTC Following December's Sell-Off

After Bitcoin reached an all-time high above $108,000 in December 2024, large institutional investors offloaded substantial amounts of the cryptocurrency. However, according to Blocktrends analyst Cauê Oliveira, these investors have since returned to the market, accumulating significant Bitcoin holdings as its price dipped below $100,000.

In a Jan. 8 CryptoQuant post, Oliveira reported that institutional investors had acquired over 34,000 Bitcoin, valued at approximately $3.2 billion. This large-scale accumulation has contributed to Bitcoin's ongoing recovery. Oliveira explained that this buying activity followed a major sell-off in late December, during which wallets holding between 1,000 and 10,000 BTC liquidated 79,000 Bitcoin within a week after Dec. 21. This sell-off occurred just after Bitcoin reached its peak price on Dec. 17, influenced by a US Federal Reserve interest rate cut. The subsequent market correction resulted in a 15% drop in Bitcoin's value.

The analyst noted that large investors took advantage of the price correction, strategically acquiring Bitcoin in smaller, multiple transactions while its price was below $95,000. This approach allowed them to accumulate large positions in the cryptocurrency during the consolidation phase.

At the time of writing, Bitcoin is trading around $94,900, reflecting a 2.3% decrease on the day. This decline mirrors the broader cryptocurrency market and was driven by recent US economic data, which dashed hopes of further interest rate cuts at the end of January. Despite this, market analysts remain optimistic about Bitcoin's future prospects.

Many analysts predict that Bitcoin could experience a record-breaking rally in 2025, fueled by pro-crypto policies from the incoming US administration under President Donald Trump and increasing adoption by nation-states. Fidelity Digital Assets suggests that central banks, sovereign wealth funds, and other government entities are likely to establish strategic Bitcoin positions. Blockware analysts also foresee Bitcoin prices potentially exceeding $150,000, with the best-case scenario seeing Bitcoin surpassing $400,000.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.