Key Points
- Despite a price drop, Bitcoin shows signs of accumulation with positive ETF inflows.
- Binance and custodial wallets with no outflows continue to add to their Bitcoin reserves.
Bitcoin’s [BTC] accumulation appears to be strong, even as its price has dipped below the $60k mark. This is indicated by the positive inflows into its ETFs over the past few days, which suggest a positive market sentiment.
Bitcoin Accumulation Among Custodial Wallets
The largest cryptocurrency exchange, Binance, has also been adding to its reserves, similar to early 2024. Crypto analyst Axel Adler noted that since the Bitcoin correction started just over a month ago, 41k BTC were added to Binance’s reserves. The exchange accumulates BTC for its reserves and liquidity purposes.
Furthermore, Ki Young Ju, the founder and CEO of CryptoQuant, observed that custodial wallets with no outflows have been adding to their reserves during the price dip. They accumulated 85k BTC over the past month, while 16k BTC flowed out of ETF reserves.
Examining Whale Behavior
On the other hand, the whale cohort with 1k-10k BTC holdings has been selling since mid-May. However, holders with 10k-100k BTC aggressively added to their holdings in late May but sold a significant portion toward the end of June. Interestingly, smaller wallets with 100-1k Bitcoin also continued to accumulate.
Despite the market fluctuations, investors are urged to maintain their composure. Previous cycles have seen many sharp price downturns. The current cycle may not yet be at its end, and levels of $52k and $46k are the next ones to watch. While the price bottom might be near, it is unclear just how near it may be, and traders should be prepared for a scenario where the $52k support might temporarily be lost.
