Bitcoin Surges to Multi-Month High, Triggering Whale Activity, Record Accumulation, and Futures Open Interest Surge
Bitcoin (BTC) kicked off the week with a strong start, reaching a new multi-month high of $69,500 on Monday. However, it failed to maintain its momentum towards the $70,000 mark and experienced a retracement to $67,563.
Despite a 2.08% decline in the past 24 hours, Bitcoin has still recorded a 3.22% increase in the past week. Interestingly, the recent price action of Bitcoin has led to a surge in whale activity, with large-scale investors steadily accumulating the cryptocurrency.
Whale Activity on the Rise
Michaël van de Poppe, Chief Investment Officer & Founder of MN Consultancy, has observed an increase in whale activity as Bitcoin hovers near its all-time highs. Despite the current price range, whales have been actively buying more Bitcoin.
Van de Poppe suggests that this trend is a positive indication for Bitcoin, signifying strong market confidence even in the face of broader economic concerns. The heightened whale activity may also signify expectations of further growth, potentially propelling Bitcoin towards targets of $300,000 to $500,000.
Accumulation Addresses Hold 2.9M BTC
Meanwhile, leading on-chain data provider CryptoQuant reports that accumulation addresses now hold over 2.9 million BTC. These addresses, known for their long-term holding behavior, have nearly doubled their Bitcoin holdings since January 2024 when they held just 1.5 million BTC.
Accumulation addresses typically exhibit no outflows, hold a minimum of 10 BTC, and have been active for over seven years. The rapid growth of these addresses in 2024 marks a significant shift from previous years, as they only held 100,000 BTC in 2018 and surged to 700,000 BTC during the 2021 bull run. At the current pace, the total BTC in these addresses could surpass 3 million by the end of the year, with a potential market value exceeding $210 billion.
Bitcoin Futures Open Interest Reaches New Peaks
In addition to increased accumulation, Bitcoin futures open interest (OI) has also reached new records. Coinglass data reveals that OI surged to $40.5 billion on October 21, surpassing its previous all-time high of $40.38 billion.
Similarly, CryptoQuant reports that OI across major crypto exchanges peaked at $20.89 billion, indicating heightened investor participation. The disparity in OI figures between Coinglass and CryptoQuant can be attributed to the different exchanges each platform monitors, with Coinglass including data from CME and others. The spike in OI suggests increased trading activity, which could contribute to higher volatility in the near future.
Disclaimer: This article provides information and should not be considered financial advice. The author’s opinions expressed in this article do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.