Key Points
- Bitcoin’s network activity shows a promising outlook for potential price appreciation, with a marked increase in whale transactions and daily active addresses.
- Bitcoin whales have added over 22,000 BTC to their wallets in the past three days, indicating growing confidence in Bitcoin’s long-term potential.
Bitcoin’s network activity has been robust, with a significant increase in both whale transactions and daily active addresses. Crypto analyst Ali Martinez suggests this trend signals a positive outlook for potential price appreciation.
In the past three days, Bitcoin whales have collectively added over 22,000 BTC to their wallets. This accumulation, valued at more than $2.24 billion at the current market price, comes alongside notable institutional purchases.
Institutional Bitcoin Investments
MicroStrategy’s recent acquisition of an additional 11,000 BTC, bringing its total holdings to an unprecedented 461,000 BTC, is a notable example. Another corporate player, KULR, has also joined the Bitcoin acquisition spree, securing 79.39 BTC for $8 million, raising its total stash to 510 BTC.
This buying spree underscores the growing confidence among large-scale investors in Bitcoin’s long-term potential. Anticipation of a U.S. Bitcoin reserve announcement by the newly-elected US President Donald Trump is partly driving this enthusiasm.
Bitcoin’s Bullish Outlook
This surge in whale activity aligns with Bitcoin’s repeated tests of the $100,000 psychological barrier earlier this month. On January 20, the cryptocurrency briefly surpassed $109,000, achieving a new all-time high. Prominent figures like former basketball star Scottie Pippen have called the $100K price point “dirt cheap” in the context of a global $900 trillion asset market, boldly projecting a $10 trillion valuation for Bitcoin in the near future.
Long-term holders’ behavior further cements Bitcoin’s bullish outlook. The supply held by investors who have retained their BTC for more than 155 days is at its peak, signaling strong conviction in the asset’s future value. This steadfastness among long-term holders suggests they are unlikely to sell, even during price fluctuations.
Spot Bitcoin ETFs reported a staggering $3.26 billion in cumulative inflows over the past four trading days. On January 21 alone, these funds witnessed inflows of $802.5 million, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the pack, accounting for $661.8 million.
This institutional momentum, combined with whale activity, has propelled Bitcoin’s price above $105,000, marking a 3.3% gain in the past 24 hours. Over the past week, BTC has climbed 8%, with its market capitalization now standing at $2.1 trillion.
On the daily chart, Bitcoin is testing the upper band of the Bollinger Band. If the price breaks out sustainably, investors could see a potential upward trajectory in the near future.
The overall cryptocurrency market capitalization has also risen by 3.5%, reaching $3.63 trillion on January 22.
