Large Bitcoin holders have resumed significant buying as Bitcoin’s price dipped toward the end of 2024 following its record high, according to Blocktrends analyst Cauê Oliveira.
More than 34,000 Bitcoin, worth approximately $3.2 billion, have been “accumulated by institutional investors, providing buying pressure for the current recovery in Bitcoin,” Oliveira wrote in a Jan. 8 CryptoQuant post.
The accumulation followed a sell-off where wallets holding between 1,000 to 10,000 BTC dumped 79,000 Bitcoin in the week after Dec. 21.
This came days after Bitcoin hit an all-time high of over $108,000 on Dec. 17, driven by the U.S. Federal Reserve’s interest rate cut, which “ended up generating a 15% correction,” Oliveira noted.
He explained that “large players took advantage of the consolidation” by executing multiple smaller trades to accumulate Bitcoin at prices below $95,000.
The seven-day balance change in Bitcoin holdings flipped positive following the late-December sell-off.
At the time of writing, Bitcoin was trading around $94,900, down 2.3% on the day, alongside a broader crypto market dip.
The drop followed U.S. jobs and economic data that dampened expectations of further interest rate cuts by the end of January.
In a Jan. 6 market note, Bitfinex analysts highlighted that sell-side liquidity in Bitcoin markets is “shrinking at a rapid pace,” suggesting that the worst of the price pressure might be over.
Analysts are optimistic about a record rally in 2025, fueled by pro-crypto policies anticipated from President-elect Donald Trump and increasing Bitcoin adoption by nation-states.
Fidelity Digital Assets research analyst Matt Hogan predicted in a Jan. 7 report that “more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin.”
Blockware analysts suggest that U.S. Bitcoin reserves could drive prices to $150,000 in a worst-case scenario and over $400,000 in the best case.
