Key Points
On Feb. 28, the price of Bitcoin touched the $64,000 mark.
This has led to speculation of a rally to new all-time highs above $70,000.
Bitcoin Whales Influence
The surge in Bitcoin’s price coincided with significant investment activity.
Whale investors are showing green signals, suggesting a new all-time high might be imminent.
The approval of the Bitcoin ETF was a significant development for the crypto sector.
As of Feb. 28, the overall market capitalization of the crypto industry had increased by $450 billion to reach a three-year peak of $2.25 trillion.
This increase was driven by unprecedented demand from 10 recently launched Bitcoin ETFs.
Together, these ETFs have acquired over 665,850 BTC, or around $40 billion, in less than six weeks of trading.
On-chain data reveals that large corporate entities and high net-worth investors have also entered the BTC market.
The U.S. Securities and Exchange Commission’s (SEC) approval has played a crucial role in legitimizing this trend.
The Santiment chart shows the historical trend of Bitcoin balances held in whale wallets.
Between May 2022 and January 2023, whales sold 500,000 BTC from their holdings.
This period coincided with the TerraUST collapse and the FTX crash of 2022.
Since then, whales have started buying BTC again after the SEC confirmed official Bitcoin filings by BlackRock around September 2023.
MicroStrategy and sovereign governments like El Salvador and the Central African Republic have also increased corporate confidence in Bitcoin.
As of Feb. 28, whales now hold 11.7 million BTC worth approximately $714 billion, which accounts for 60% of the total supply currently in circulation.
Large institutional investors usually have a longer investment horizon than short-term retail swing traders.
These investors’ tendency to accumulate and retain large amounts of BTC reduces the available supply in the market, creating scarcity and pushing prices up.
Therefore, the resurgent Bitcoin whales could likely drive Bitcoin’s price toward an all-time high above $70,000.
As of Feb. 28, BTC is trading at $59,141.
If the Bitcoin whales’ buying trend continues, the BTC price rally could reach $70,000.
However, BTC faces resistance around the $62,400 area.
IntoTheBlock’s data shows that 326,790 addresses had acquired 94,990 BTC at the maximum price of $62,424.
If the price breaks even, many of these investors could exit.
If the bulls can overcome that sell-wall, it could generate stronger bullish momentum for a new all-time high above $70,000.
Alternatively, bears could take control if they force a sharp drop below $55,000.
However, this seems unlikely considering the strong support buy-wall at $57,360.
