Report: Crypto whales ‘aggressively’ accumulate Bitcoin

Crypto whales have “aggressively” accumulated substantial amounts of Bitcoin over the past six weeks, according to analytics firm Glassnode.

Data shows that non-exchange crypto whales are holding over $265 million worth of Bitcoin. In the same period, smaller investors have sold their Bitcoin holdings. The contrast has resulted in a bifurcation in the Accumulation Trend Score — an indicator that shows the relative size of entities holding and distributing Bitcoin.

Glassnode also pointed out that the inflow of major digital currencies in crypto exchanges is at a record low of $1.84 billion. The figure is 85 percent lower than the peak inflow during a large-scale sell-off in May 2021, prompted by exit liquidity events in the market.

Analysts said there had been a notable shift in the total Bitcoin holdings in the top three crypto exchanges — Binance, Coinbase and Bitfinex — over the past three years. Binance and Bitfinex’s Bitcoin reserves have increased by 421,000 and 250,000 units, respectively. Meanwhile, Coinbase’s reserve has declined by 558,000. Binance holds the largest amount of Bitcoin among the three exchanges, with 703,000 units in its reserves.

CryptoGlobe reported that Bitcoin whales started “buying the dip” after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its global CEO Changpeng Zhao. The federal agency said Binance offered unregistered securities to American clients. It alleged the exchange’s U.S. entity, Binance.US, redirected client funds to firms managed by Zhao.

The SEC also sued Coinbase for operating as an unregistered securities broker in the U.S. The two crypto exchanges experienced significant deposit outflows following the lawsuits. Binance.US also suspends U.S. dollar deposits and warns of withdrawal pauses using said currency.

Bitcoin traded below the $27,400 resistance level last week after the SEC announced the Binance lawsuit. Analysts explained that investors lost their risk appetite due to the regulatory actions. The ongoing lawsuit may further lower the Bitcoin price to $26,000, said analysts.

The crypto community has criticized the SEC’s actions. Blockchain Association CEO Kristin Smith said the financial regulator circumvented formal policymaking and denied public participation. Will Paige, an analyst at Insider Intelligence, explained that the absence of a regulatory framework caused the SEC to take action.

Experts said the SEC might face difficulty in controlling the crypto industry. Decentralized exchanges (DEXs) experience a surge in trading volumes as regulators conduct a “crypto crackdown.” Data from June 5 to 7 showed a 444 percent increase in median trading volume across the top three DEXs. Within the same period, Binance’s net outflows reached $778 million.

Bitcoin may hit new high next year

Bitcoin may hit a new high of up to $100,000 by the end of next year, according to British global bank Standard Chartered earlier this year. Geoff Kendrick, an analyst at Standard Chartered, said the banking crisis in the U.S. last March had increased the market’s confidence in Bitcoin.

Kendrick explained that the banking crisis caused volatility in stablecoins, rivals to Bitcoin. He also said Bitcoin could maintain its status as a decentralized asset during the banking crisis.

The analysts said the stabilization in risk markets could further boost the Bitcoin price in the crypto market. Investors avoided risk assets, such as crypto and equities, last year as the Federal Reserve continued to raise its benchmark rate. Risk markets began to rally since New Year on expectations that the Fed would soon end its monetary tightening cycle.

The market now expects the U.S. central bank to not raise its benchmark rate in the next policy meeting. Investors yet predict that the Fed will do another rate hike in July. Another raise will bring the fed fund rate to 5.25 to 5.50 percent.