FameEX Hot Topics | Analyst: Bitcoin Whales Have Accumulated 34K BTC Since December Sell-Off

After Bitcoin reached a record six-figure high in December 2024, large institutional investors dumped vast amounts of the cryptocurrency. However, they have since returned to the market, accumulating significant amounts as Bitcoin’s price dropped below $100,000, according to Blocktrends analyst Cauê Oliveira.

Oliveira stated in a Jan. 8 CryptoQuant post that institutional investors have accumulated over 34,000 Bitcoin, worth approximately $3.2 billion. This accumulation has contributed to the ongoing recovery in Bitcoin's price. He explained that the buy-up followed a major sell-off, where wallets holding between 1,000 and 10,000 BTC sold off 79,000 Bitcoin in the week following Dec. 21. This occurred after Bitcoin's price peaked above $108,000 on Dec. 17, driven by a US Federal Reserve interest rate cut. The resulting sell-off triggered a 15% price correction.

The analyst noted that large investors used this price correction as an opportunity, strategically making large purchases broken down into smaller orders. These purchases took place while Bitcoin's price was below $95,000. By doing so, these investors began building substantial positions in the cryptocurrency during the consolidation phase.

At the time of writing, Bitcoin is trading at around $94,900, down about 2.3% on the day, in line with the broader cryptocurrency market. The drop was influenced by recent US jobs and economic data, which dashed hopes for further interest rate cuts at the end of January. Despite this, market analysts are optimistic about Bitcoin's future.

Analysts predict that Bitcoin may see a record rally in 2025, driven by expected pro-crypto policies from the incoming US administration under President Donald Trump, as well as increasing nation-state adoption of Bitcoin. Research from Fidelity Digital Assets suggests that central banks, sovereign wealth funds, and other government entities are likely to establish strategic positions in Bitcoin. Furthermore, Blockware analysts predict that a US Bitcoin reserve could push Bitcoin’s price beyond $150,000, with the best-case scenario seeing it rise above $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.