Key Points
- The movement of previously inactive Bitcoins has seen the largest spike in over two years.
- Despite a sharp correction from its peak, whales continue to add Bitcoin exposure to their portfolios.
Bitcoin [BTC] has been consolidating in the $64k — $67k range over the week, facing significant resistance at $68k.
Currently, Bitcoin is trading at $64.14k, which is 12% lower than the all-time high hit earlier in the month.
Increased Volatility Expected
In the coming days, a significant increase in volatility could be witnessed. This is due to the fact that many previously inactive Bitcoins started moving between addresses on the 23rd of March.
This movement represents the largest spike in the movement of Bitcoin’s dormant supply in more than two years.
Throughout 2023, dormant supply across major age bands reached new highs, indicating a market strategy of caution and HODLing.
Whales Continue to Accumulate Bitcoin
However, with Bitcoin’s price reaching new highs in 2024, these long-term holders have begun chasing profits, freeing up more Bitcoins for active trading.
Interestingly, the accumulation did not slow down despite Bitcoin’s sharp correction from its peak. This suggests a belief in the crypto’s long-term price appreciation.
Whales have also shown their optimism in the derivatives markets. Currently, nearly 58% of all whale positions on Binance were long on Bitcoin.
