Bitcoin’s price has long been known for its volatility, with massive surges and sharp declines over short periods.
In 2024, this volatility has been particularly evident, with Bitcoin reaching all-time highs of $73,800 earlier in the year before Bitcoin Price Crash to lows of $48,000. Despite these fluctuations, the cryptocurrency has been on the rise again, with the number of major Bitcoin holders—commonly referred to as “whales”—increasing steadily.
Recent data reveals that the number of large holders, each controlling at least 1,000 BTC, has jumped to 1,678, the highest count since January 2021. This rise in whale accumulation comes at a time when interest in Bitcoin is growing, especially through alternative investment products like U.S.-listed spot ETFs.
Whales are network entities that control a significant amount of Bitcoin. They are clusters of wallets that belong to a single entity, typically holding 1,000 BTC or more. These large players are closely monitored because their activities can influence Bitcoin’s liquidity and price trends.
While the big holders are on the rise, retail investors (smaller investors) are accumulating Bitcoin at a much slower rate. As Bitcoin’s price approaches $70,000, data shows that retail investors have added only 1,000 BTC over the past month—a pace that is historically slow. Since the start of 2024, larger holders have been buying more aggressively, adding 173,000 BTC compared to 30,000 BTC from retail buyers.
At the time of writing, Bitcoin is trading at just over $67,000, nearing its previous all-time high of $73,800. Although the price briefly surpassed $69,000 earlier this week, it pulled back due to factors like a stronger U.S. dollar and rising Treasury yields.
Market trends suggest that Bitcoin may continue its upward momentum. Some analysts believe that while rising yields might create short-term challenges for Bitcoin, the overall outlook for Bitcoin’s price remains positive. In fact, options trading data points to key price levels of $80,000 and $100,000 that traders are watching closely for the remainder of the year.
Growing Demand for Bitcoin ETFs
As Bitcoin’s price continues to rise, there’s also an increase in demand for exchange-traded funds (ETFs) that are tied to Bitcoin. Over the past seven days, Bitcoin ETFs have recorded an inflow of 25,675 BTC, which amounts to around $1.74 billion. This marks the largest weekly inflow since July.
Bitcoin ETFs now hold a total of 1.1 million BTC. These products allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency.
Since its low point in mid-October, Bitcoin has surged by 15%, getting closer to its all-time high. Several factors are contributing to this price rally, including speculation about potential rate cuts from the Federal Reserve and the increasing odds of a pro-crypto U.S. presidential candidate winning the upcoming election.
U.S.-listed spot ETFs, in particular, have been seeing strong interest from investors. Since mid-October, these funds have pulled in nearly $1.9 billion, equivalent to around 21,450 BTC. To put this into perspective, this means that the demand for Bitcoin through ETFs over the past month represents nearly 48 days’ worth of newly mined Bitcoin, as the network produces around 450 BTC per day.
Overall, Bitcoin ETFs have attracted more than $20 billion in net inflows since their launch, a significant achievement when compared to the time it took gold ETFs to reach the same milestone.
Alongside Bitcoin, Ether (ETH) is also seeing increased interest. In the U.S., spot Ether ETFs registered an inflow of $48.4 million on October 17, the largest since late September.
The inflows were spread across different funds, with some of the largest Ether ETFs attracting significant amounts of new investments. This brings the total net inflows for these funds to several hundred million dollars, further showcasing the growing interest in cryptocurrencies beyond Bitcoin.
Final Thoughts
The rising number of Bitcoin whales and growing demand for cryptocurrency investment products, such as Bitcoin and Ether ETFs, highlight the increasing confidence in the crypto market. While retail investors are accumulating more slowly, large holders and institutional interest are driving the momentum.
As Bitcoin approaches its previous highs, the outlook remains optimistic, with key levels being closely watched. This trend, alongside Ether’s growth, signals that cryptocurrencies continue to attract attention from both major players and everyday investors.
