Bitcoin Whales Accumulate Amid Post-Inauguration Price Correction
Bitcoin whales are actively accumulating during a price dip following Donald Trump’s inauguration as the 47th U.S. President, signaling renewed confidence among large holders in the cryptocurrency’s long-term potential.
Bitcoin’s Post-Inauguration Price Drop
On the heels of reaching an all-time high of $109,000 on Monday, Bitcoin began a price correction shortly after Trump’s swearing-in ceremony. The drop, alongside declines in other cryptocurrencies and Trump’s newly launched token, highlights market volatility as investors digest the initial policy directions of the new administration.
Despite the dip, new data reveals that whale wallets—those holding 10+ BTC—are seizing the opportunity to accumulate Bitcoin.
Whales Lead the Accumulation Trend
According to Santiment, a leading on-chain analytics platform, wallets with significant Bitcoin holdings have been adding 1,002 BTC daily over the past five days. This accumulation trend has already contributed to a 2.8% price rebound in the same period.
Notable Accumulation Cycles
Over the past six months, five major accumulation cycles have been identified:
- July 20 to October 11: 164 BTC added daily, leading to a 7.3% price decline.
- October 11 to November 5: 884 BTC added daily, resulting in a 9.8% price increase.
- November 5 to December 26: The largest cycle, with 2,060 BTC added daily, driving a 35.8% price surge.
- December 26 to January 15: Slower activity with 156 BTC daily and a modest 6.2% price rise.
The current phase, marked by the addition of 1,002 BTC daily, suggests strong confidence among large holders in Bitcoin’s upward trajectory despite short-term corrections. Santiment highlights that whale behavior is a key market indicator, with high accumulation rates often preceding bullish momentum.
Market Volatility and Uncertainty Ahead
Bitcoin’s post-inauguration price movement has been accompanied by increased market volatility. Trump’s potential crypto policies have sparked speculation, leading to significant liquidations, with $816 million in long positions erased.
Key Factors Driving Volatility
- Policy Uncertainty: Speculation about Trump’s executive orders on cryptocurrencies, including a potential national Bitcoin reserve, has created market turbulence.
- State-Level Crypto Reserves: States like Texas and Massachusetts have proposed independent crypto reserves, adding to the market’s speculative climate.
- MicroStrategy Shareholder Vote: Upcoming events like the shareholder vote at MicroStrategy contribute further uncertainty to the market.
QCP Capital noted that Bitcoin volatility remains high, with the curve in backwardation, reflecting the market’s uncertain short-term outlook.
Conclusion: A Bullish Signal from Bitcoin Whales
While the market remains volatile, the renewed accumulation by Bitcoin whales is a bullish indicator of confidence in the cryptocurrency’s long-term value. Large wallet holders are leveraging the price correction as an opportunity to strengthen their positions, signaling optimism amid uncertainty.
As markets await clarity on Trump’s crypto policies, all eyes are on key developments such as potential federal Bitcoin reserves and state-level initiatives. For now, the actions of Bitcoin whales offer a strong counter-narrative to short-term market jitters.
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