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Large investors, often called whales, continue to shape Bitcoin’s short- and long-term price trajectory. Short-Term Whale (STH) or new investors have increased their activity in the Bitcoin market. This increasing whale movement provides deeper insight into BTC price action.
CryptoQuant on Bitcoin Whale Outlook
In an X post, onchain data provider CryptoQuant revealed surging activities from new Bitcoin whales or STH.
CryptoQuant posted a chart showing these New Whales have grown substantially, reaching 60% of the total realized capitalization of large players.
New Whales are market players with over 1,000 BTC but a coin age of less than 155 days.
While old whales prefer long-term strategies, new whales are more actively involved in trading and react quickly to market changes.
Their actions frequently mirror the stage current market phase, which can be either accumulation, growth, or profit-taking.
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The chart released by CryptoQuant indicates a sharp rise in the proportion of new whales. These investors entered the active growth phase when BTC price touched $55,000.
Their market share has grown from 43% to 60% of the total realized capitalization of large players. This demonstrates their aggressive market debut amid optimistic sentiments.
Therefore, the share of new whales serves as an indicator of market sentiment among new major participants. Market activity from these investors tends to increase during periods of optimism and decrease during periods of volatility.
With Bitcoin’s price below the $100,000 support level, the market is watching its influence on new whale investors.
Bitcoin Ecosystem Trend: Spot Bitcoin ETF Investments
Meanwhile, the spot Bitcoin Exchange Traded Fund (ETF) market continues to see increasing investor interest.
On Friday, January 25, the market recorded inflows reaching $517.7 million, representing the fourth consecutive day of inflows. Fidelity’s FBTC saw the highest daily inflows, which came in at $186.1 million.
Ark Invest’s ARKB came second with total daily inflows of $168.7 million, followed by BlackRock’s IBIT with $155.7 million.
Also, Grayscales’s BTC and WisdomTree’s BTCW recorded minor inflows of $13 million and $2.8 million, respectively. Bitwise’s BITB became the outlier, recording outflows of $8.6 million.
The recent surge in the spot Bitcoin ETF marks a shift from persistent outflows recorded in the first half of January. For instance, BlackRock’s iShares Bitcoin Trust experienced a record-breaking $332.6 million outflow on January 2. This marks the largest single-day withdrawal since its inception.
ETF market observers attribute the rising inflow to the entrance of institutional players as they set aside their caution regarding Bitcoin exposure.
BTC Price and Expectations
The price of Bitcoin fell sharply to below $100,000 during the early hours of Monday’s trading session.
This decline follows a massive sell-off in the broader crypto market as top US stocks plummeted. At press time, BTC has decreased by 5.4% in the last 24 hours to trade at $99,313.
However, the daily trading volume has surged over 330%, suggesting investors’ willingness to accumulate the coin.
Thus, a significant push in the market could cause Bitcoin to move back to its all-time high or even beyond.
Relying on Bitcoin’s price multiplier trends, Glasnode pegged the overbought cycle top at $181,000.
BlackRock’s CEO Larry Fink also forecasted that Bitcoin could hit $700,000 based on increasing institutional adoption and strong market fundamentals.