The year 2024 has gotten off to an exciting start for Bitcoin investors. This year, weekly Bitcoin flows as high as $100,000 are signaling BTC’s next bull run. This is well above the $70,000 seen during the bull run in 2021. Here’s a look at what’s behind this surge and what the future holds.
Institutional Investments and Big Whales
Bitcoin price surpassed $65,000 this week thanks to strong inflows and strong interest in spot Bitcoin ETFs. Institutional players and BTC whales were seen buying aggressively during the correction in early July. CryptoQuant CEO Ki Young Ju stated that there has been a significant shift in Bitcoin trading dynamics, with over-the-counter (OTC) markets outpacing centralized exchanges.
According to Ju, whale wallets holding more than 1,000 BTC – including custodial wallets and spot Bitcoin ETFs – have accumulated 1.45 million BTC so far this year. This brings the total accumulations to more than 1.8 million BTC. Given that a total of 70,000 Bitcoins entered during the 2021 bull run, it seems that weekly inflows of $100,000 in 2024 could set the stage for the next bull run.
Old and New Whale Wallets
Ki Young Ju noted that these large accumulations were not due to internal transfers from existing custody wallets. “The balance of old whale wallets (more than 155 days) did not decrease, while the balance of new whale wallets (less than 155 days) increased,” he explained. This shows that new investors and big players are entering the market.
The whales’ accumulation strategies this year are increasing their influence on the market and contributing to the rise of the Bitcoin price. These accumulations are expected to play an important role in Bitcoin’s future price movements.
Bitcoin Price Movements and Future Prospects
The Bitcoin price has risen by more than 20% in the last two weeks, from $53,500 to $65,500. However, after this sustained rise, the Bitcoin price has been experiencing some partial pullbacks. Currently, Bitcoin is trading at $64,581, down 1.5%, with a market capitalization of $1.274 trillion.
Renowned crypto analyst Peter Brandt noted that the Bitcoin chart continues to make lower highs and lower lows. “While I am impressed by the current rise in Bitcoin, the series of lower highs and lower lows continues despite the halving, ETF and hype,” he said. He also noted that the Mt. Gox redistribution also contributed to BTC price volatility.
Bitcoin Momentum Indicators and Market Sentiment
On-chain College noted that there was a short decline under the BTC Momentum indicator, with the aim of removing less committed traders from the market, resetting market sentiment and preparing for the next rally. Such moves are considered important for the long-term health and sustainability of the market.
As Bitcoin’s show continues, market players and analysts continue to closely monitor how these dynamics will evolve and affect Bitcoin’s future price movements. Weekly BTC inflows of $100K will be an important indicator to watch for the rest of 2024.
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