Bitcoin enthusiasts are buzzing with excitement as the cryptocurrency market witnesses a remarkable shift. With unprecedented $100,000 weekly Bitcoin inflows recorded so far in 2024, significantly higher than the $70,000 annual inflows during the 2021 bull run, speculation about a potential new bull market is rife.
One of the most significant trends contributing to this surge is the dominance of over-the-counter (OTC) markets over centralized exchanges. Crypto Quant CEO Ki Young Ju highlighted this trend, noting that whale wallets—holding more than 1,000 BTC, including custodial wallets and spot Bitcoin ETFs—have accumulated a staggering 1.45 million BTC this year alone. This accumulation has propelled the total whale holdings to over 1.8 million BTC.
Ju emphasized that this surge is not a mere internal reshuffling of existing custodial wallets. Instead, it reflects a genuine increase in new whale wallets (those holding BTC for less than 155 days), while the balance of older whale wallets (holding BTC for over 155 days) remains steady.
The recent Bitcoin rally past $65,000 has been fueled by strong inflows into spot Bitcoin ETFs and aggressive buying by institutional players and BTC whales. This trend was particularly evident during the early July BTC correction, when institutional investors seized the opportunity to accumulate more Bitcoin at lower prices.
Bitcoin’s price has experienced significant volatility recently. After a robust rally that saw BTC prices soar more than 20% from the lows of $53,500, the cryptocurrency faced a partial retracement. As of the latest data, Bitcoin is trading at $64,581, down 1.5%, with a market cap of $1.274 trillion.
Prominent crypto analyst Peter Brandt has pointed out that despite the recent bounce, Bitcoin’s chart continues to exhibit a pattern of lower highs and lower lows. He cautioned investors, stating, “While I am impressed by the current bounce in Bitcoin, it should be noted that the sequence of lower highs and lower lows continues despite the halving, despite the ETF, despite the hype.”
On-chain metrics have also played a crucial role in shaping market sentiment. According to On-chain College, a brief dip below the BTC Momentum indicator was observed, which served to shake out less convicted investors, reset sentiment, and potentially set up the next rally.
The redistribution of Bitcoin from the Mt. Gox exchange has added another layer of complexity to the current market dynamics. The long-awaited redistribution has injected volatility into the market, contributing to price fluctuations as creditors receive their BTC.
As the market digests these developments, the question on everyone’s mind is whether the current $100,000 weekly Bitcoin inflows will indeed set the stage for a new bull run. While past performance is not indicative of future results, the signs are promising.
Crypto Quant CEO Ki Young Ju remains optimistic, suggesting that the current accumulation trend among whale wallets could be a harbinger of positive price action in the coming months. If institutional interest continues to grow and OTC markets maintain their dominance, Bitcoin could be poised for a significant upward trajectory.
The cryptocurrency market is no stranger to volatility, and Bitcoin’s recent price action underscores this reality. However, the unprecedented $100,000 weekly Bitcoin inflows in 2024, coupled with strong institutional interest and the dominance of OTC markets, suggest that Bitcoin could be on the brink of a new bull run.
As always, investors are advised to exercise caution and conduct thorough research before making investment decisions. The cryptocurrency landscape is dynamic, and while the current trends are promising, market conditions can change rapidly.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
Get the latest Crypto & Blockchain News in your inbox.
Join Now