Bitcoin whales continue to be very active on the accumulation front, adding another 30,000 BTC over the last two days. Over the past four months, these significant investors, holding between 10 and 10,000 BTC, have collectively acquired 0.9% of the total Bitcoin supply. In the meantime, one of the largest bitcoin whales in history just converted $9 billion worth of Bitcoin to cash through Galaxy Digital. Even after this huge sale, the buildup goes on. Despite the large sell pressure, institutions continue to demonstrate insatiable demand for Bitcoin. Their total combined holdings equal 68.44% of the cryptocurrency’s total supply.
Whale Accumulation and Distribution
Additionally, wallets holding between 10 and 10,000 BTC have accumulated an extra 218,570 BTC since late March. This indicates a very pronounced and steady trend of accumulation. This increased activity is a strong long-term bullish signal from these pivotal players, who are quietly yet strategically building their respective Bitcoin positions.
The market has been subject to massive institutional profit-taking, including one whale selling a whopping $9 billion Bitcoin. The distribution event, which was carried out with the help of Bitcoin financial services firm Galaxy Digital, highlights the bizarre undercurrents of the Bitcoin market. Here, accumulation and profit-taking occurs in tandem.
Even with this massive sell-off, the total profits earned by Bitcoin investors are still quite substantial. In fact, Bitcoin investors are sitting on more than $1.4 trillion in paper profits. Strikingly, 97% of the circulating supply remains in a state of profit.
Diversification into Other Assets
Although Bitcoin is still the name of the game for most whales, we’re starting to see more evidence of them wanting to diversify into other digital assets. SharpLink Gaming, for instance, just really put $780M in ETH.
"Notably, whales have accumulated large ETH positions, including SharpLink Gaming’s recent $463 million stake, while Solana continues to attract interest due to its thriving DeFi and memecoin ecosystems," - Zade
Bitcoin whales are moving out of the coin and diversifying their investments. They are discovering and pursuing countless opportunities in the cryptocurrency market to capitalize on these developing platforms and technologies.
"Diversifying into high-alpha plays, though the primary focus remains on established Layer-1 platforms with strong utility," - Zade
Market Activity and Profitability
In the last 24 hours, spot trading volume has jumped up to a staggering $44 billion. This spike signals a new wave of activity and increasing interest in the Bitcoin market. The recent spike in trading volume underscores the deep institutional demand behind Bitcoin. This request continues to have relevance even in times of extreme volatility and major redistribution.
"Even after this large distribution event, the magnitude of unrealized profit held by market participants remains strong," - Glassnode analysts
All market participants are sitting on a lot of unrealized profit, adding to the overall exuberance around Bitcoin. Plus, it shows that investors believe in the long-term value of the project.
