Bitcoin broke past the crucial $11k on the 9th of October. The whale activities of Bitcoin suggested strengthening momentum in terms of the coin’s price. The price of the world’s largest cryptocurrency tested $11,500 for the first time in over a month and one of the main drivers for this could be whale accumulation. According to the blockchain intelligence platform, Glassnode, which noted that the number of Bitcoin whales has been on a consistent uptrend for the past months.
Huge Bullish Signal
Typically whales and institutions have a major impact on the price of Bitcoin because of the sizes of their trades. The rise of Bitcoin’s value this week has not yet triggered a sell-off. This essentially depicted a sentiment of declining appetite of whales to sell BTC, which is a positive factor. Hence, there is a strong buying demand from Bitcoin whales
Along the same line, Glassnode’s tweet read,
“An indication that more high-net-worth individuals are entering the space to invest in Bitcoin in expectation of BTC price appreciation.”
Rising Institutional demand
The optimistic activity of BTC whales occasioned with a clear spike in institutional demand for Bitcoin on Bakkt. According to the latest Skew charts, the open interest [OI] in monthly Bitcoin futures on the Intercontinental Exchange’s [ICE] Bakkt platform was surging to levels not seen since mid-August. The figures for OI rose to $15 million on the 9th of October.
Open positions on the Chicago Mercantile Exchange’s [CME] Bitcoin futures also bounced back depicting a bullish outlook in the underlying asset’s price action in the coming days. This uptick in two major institutional platforms along with the price surge essentially indicated the strength behind the latest push. Meanwhile, trading volume on both Bakkt and CME has been on a declining trend for the past couple of weeks.
Over the last two months, two multibillion-dollar behemoths made public bulk purchases of Bitcoin. Back in August, it was the publicly-traded business intelligence company, MicroStrategy announced the purchase of 21,454 Bitcoins at an aggregate purchase price of $250 million. This was followed by yet another additional $175 million worth of Bitcoins.
More recently, Jack Dorsey’s financial payments company, Square $50 million BTC purchase further pointed at a big buy signal. These were the significant events for Bitcoin which catalyzed the rise of positive momentum.