Worldsfeed Tech Desk: In the past two weeks of August, large Bitcoin investors, often referred to as “whales” in the cryptocurrency world, displayed confidence in the digital currency despite recent price fluctuations. Data from crypto analytics firm IntoTheBlock reveals that addresses holding at least 0.1% of the Bitcoin supply, equivalent to over $500 million, increased their holdings by a substantial $1.5 billion. This accumulation occurred even as inflows into centralized exchanges remained minimal, suggesting genuine buying interest rather than just funds being transferred between accounts.
These significant purchases took place when Bitcoin’s price dipped to a two-month low, although it temporarily rebounded due to a significant court decision related to Grayscale’s efforts to list a spot Bitcoin exchange-traded fund (ETF) in the United States. Notably, large holders started accumulating Bitcoin after a substantial drop on August 17, when the price plummeted by more than 10% to dip below $26,000, marking its lowest point since June.
Furthermore, these investors increased their holdings following Grayscale’s legal victory against the U.S. Securities and Exchange Commission (SEC). A federal appeals court ordered the SEC to reconsider its denial of the conversion of the $14 billion Grayscale Bitcoin Trust into a more desirable spot Bitcoin ETF. This decision was seen as a significant step towards making Bitcoin more accessible to a broader range of investors in the United States.
Despite Bitcoin’s recent price weakness and a return to levels below $26,000, this accumulation trend suggests that institutional investors are becoming more optimistic about Bitcoin as the prospect of ETF approvals draws nearer.