The price of Bitcoin has once again experienced a dip, this time falling below the $90,000 mark, a significant drop from its earlier peak of $94,000. This is an 18% drop from its all-time high (ATH) of $109,000, which was recorded in January. However, the market is witnessing the return of large-scale investors, also known as whales, whose actions are known to significantly impact the market.
An analyst from CryptoQuant, Darkfost, has observed a trend in whale behavior. Over the past month, whales have been decreasing their Bitcoin holdings, marking the longest period of net decline in the past year. Recent data suggests a shift in this trend, with whales starting to increase their holdings, pushing the monthly percentage change back into the positive.
If this trend continues, it could indicate a return of bullish momentum, as periods of whale accumulation have historically been followed by upward price movements. Darkfost’s analysis suggests that the actions of these whales, due to the large amount of Bitcoin they control, play a crucial role in determining Bitcoin’s price direction.
This reaccumulation by whales suggests their confidence in Bitcoin’s long-term value. Increased buying activity by whales has typically coincided with periods of price stability or growth, making this a key indicator for traders and investors.
The return of whale interest in Bitcoin coincides with reports that US President Donald Trump has signed an executive order to establish a strategic Bitcoin reserve. According to CryptoQuant analyst Maartuun, this could mean that the United States is set to become a long-term holder of Bitcoin. The reserve could potentially be funded with seized Bitcoin, currently totaling 188,898 BTC, equivalent to approximately $18.14 billion.
This move could significantly reduce market selling pressure as these holdings would be secured rather than liquidated. Reports also suggest that the US government may consider purchasing additional Bitcoin. If these reports are accurate, this could introduce a new dynamic to Bitcoin’s supply and demand, potentially influencing its price trajectory.
