Bitcoin Whale Balances Rise in March After Nearly a Year of Decline: What It Means

Bitcoin whales have returned to buying mode during March by acquiring 62K BTC after a year of reduced buying.

Meanwhile, the total BTC amount acquired by new investors during this period reached 172,705 units, which corresponded to the level of demand following the FTX collapse.

The price direction at $84K depends on whether it maintains its position or starts to decline.

The Impact of Whale Accumulation on BTC Price

Bitcoin whale community maintained approximately 8 million BTC throughout the majority of the last four years, regardless of price movements.

However, the Bitcoin total market value surpassed $9 million, which triggered an immediate reduction in whale holdings.

Meanwhile, the total Bitcoin balance of whales declined to 6.8 million BTC, while they sold off 1.2 million BTC.

An extensive token distribution into circulation caused market-wide price depreciation as the increased supply overwhelmed market absorption capacity.

Moreover, whale trading activity plays an essential role because their market activities shape both market liquidity levels and price movement patterns.

Hence, large BTC offloads from whales generate panic among retail investors because they indicate profit-taking and strategic exits.

Bitcoin price rose from $2 million to over $9 million in total market value during late 2023 and early 2024, yet whale investors maintained their holdings.

As a result, the market sell-off triggered price volatility that resulted in market corrections.

Now, the trend has reversed. The whale investor population entered a buying trend during March 2025 when they purchased 62,000 BTC to indicate their readiness for another market rally.

Whale accumulation activities present the potential to stabilize market prices while supporting additional market expansion.

However, the token might experience additional downward pressure when whale buying activities decrease or when whales begin to sell again.

New Investors and Supply Absorption: A Key Indicator

Furthermore, Bitcoin’s price action is directly influenced by supply and demand. Since February 23, the token has seen new investors accumulate 172,705 BTC in a pattern similar to the FTX collapse in late 2022.

This suggests that, there is robust demand for the token, even though the price has reached high levels.

Typically, the cryptocurrency experiences short-term price corrections after its supply grows quickly because additional BTC becomes available for market sale.

However, the incoming supply has not triggered any substantial price decline during this period.

Hence, the market data shows positive signs because investors appear ready to acquire Bitcoin at present prices.

Historical patterns show Bitcoin generally sustains or raises its value when market demand persists while supply expands.

Following the FTX collapse, the token entered an accumulation phase, which resulted in market recovery and initiated a new bull market cycle.

Meanwhile, the current demand absorption of supply indicates the token may maintain its upward trend.

However, the upward trend could face another price drop if supply grows faster than demand before continuing its upward movement.

$84K Retest in Progress: What Happens Next?

Currently, Bitcoin remains at the crucial $84,000 support zone as it performs a test of this level.

According to Rekt Capital, the token requires daily price closure above $84K to validate its successful retesting phase.

And it may advance to $96,000 and beyond if it maintains a position above this critical level.

However, Bitcoin will likely experience additional price drops if its retest fails to succeed, thus delaying its search for new support levels.

Historically, the market typically experiences deeper price drops after failed retests, as traders who purchased at higher levels need to sell their positions to reduce losses.

The next significant support zones for Bitcoin after a potential price drop below $84K would be $80K, which might initiate forced sales from leveraged traders, thus producing additional market volatility.

At the same time, the current price movement may be influenced by macroeconomic factors.

According to Arthur Hayes, the US bank credit supply index shows increasing liquidity conditions, which supports Bitcoin risk assets as investors gain additional capital to invest across markets.

While, the improving conditions support a bullish price trend in the future, they do not necessarily lead to an immediate price increase.