As Bitcoin continues to trade in the $60,000-$70,000 range, a new wave of optimism is emerging from on-chain analysis. Willy Woo, an on-chain analyst, visited X on May 7 to report an exciting development: wealthy people BTC holders quickly accumulated the coin.
The fortunate whales accumulate
In a chart, the analyst noted that whales, entities holding between 100 and 1,000 BTC, have been gobbling up BTC over the past two months. Their involvement, Woo says, was the “strongest buying spree” by these whales in recent history.
However, while there is excitement, some argue that the surge in BTC accumulation from this cohort could be due to issuers of spot Bitcoin exchange-traded funds (ETFs). Since the U.S. Securities and Exchange Commission (SEC) approved the first spot ETFs in January, these issuers, including Fidelity, Bitwise and Pro Sharesnow controls over 850,000 BTC.
However, Woo contradicts this argument, emphasizing that this increase is not due to the involvement of these Wall Street players. The analyst explained that, based on the available data, these entities are “distinct” and were selected through forensic clustering techniques.
Additionally, Woo observes that publicly available ETF spot flow data reveals a divergence. For example, while these whales purchased BTC over the course of two months, accumulating over 220,000 BTC according to network activityspot ETF flows declined, only collecting around 165,000 BTC during this period.
This discrepancy suggests that investors, including institutions, who gain exposure to BTC via spot ETFs cannot account for the entirety of whale activity.
Bitcoin Buying Pressure Maintains, Will Bulls Surpass $73,800?
Additionally, Woo clarifies that the accumulation over the past two months was not a single, massive purchase. Instead, the analyst explains, a clear trend of sustained buying is observed over 30 days over two months.. This clearly shows that their approach was deliberate and that they were keen to accumulate strategically when prices were depressed.
The fact that whales are involved and actively buying, based on on-chain activity, is optimistic. The room has moved horizontally over the past two months since BTC prices peaked at $73,800.
At the start of the month, Bitcoin prices fell as low as $56,500 before recovering steadily over the weekend. For the uptrend to continue, there must be a conclusive close above $70,000 and, ideally, $73,800. Analysts predict a possible peak to $100,000.
Featured image from Canva, chart from TradingView
