Bitcoin Whales Accumulate During Post-Inauguration Price Correction

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bitcoin-usd/”>BITCOIN WHALES UNLEASH THEIR INNER SHARKS 🦈Bitcoin Whales Accumulate During Post-Inauguration Price Correction

Well, shucks, folks! It seems like Bitcoin, along with other cryptocurrencies and that fancy new Donald Trump token, took a bit of a tumble on Tuesday. Now, I ain’t one to cry about a little price correction, but it’s worth noting that the president’s initial policies post-inauguration seemed to be as effective as a chicken trying to hold a candlelight dinner. Bitcoin had reached a record high of over $109,000 on Monday, but then it began to retreat, faster than a politician’s promises on election day.

However, new data revealed that those sneaky Bitcoin whales have been busy accumulating some serious BTC.

Bitcoin Drops, Whales Accumulate

According to the latest analysis shared by Santiment, wallets holding 10+ BTC have been accumulating 1,002 Bitcoin daily over the past five days. Now, that’s a whole lotta Bitcoin, and it’s a positive sign for the price, too. In fact, it’s contributed to a 2.8% price increase in the same period. Over the last six months, the on-chain analytic platform has identified five distinct accumulation cycles, each with varying impacts on Bitcoin’s price trajectory.

From July 20 to October 11, whales accumulated 164 BTC daily, coinciding with a 7.3% price decline. That’s like trying to fill a leaky bucket with a hole in it. Then, from October 11 to November 5, things shifted dramatically, with 884 BTC added daily, resulting in a 9.8% price rise. And if that wasn’t enough, the most significant accumulation occurred from November 5 to December 26, where 2,060 BTC per day were added, driving a 35.8% price surge. But, as we all know, all good things must come to an end, and the December 26 to January 15 period saw slower activity, with 156 BTC added daily and a modest 6.2% price increase.

The current phase suggests renewed interest, as the 1,002 BTC daily accumulation indicates large wallet holders’ confidence in Bitcoin’s upward potential. Santiment highlighted the importance of monitoring whale and shark behavior as a predictive market indicator. High accumulation rates often signify optimism among key stakeholders, whereas stagnation or declining holdings may signal market volatility or corrections.

Volatility Ahead?

Now, I know what you’re thinkin’, folks: what’s all this fuss about Trump’s inauguration and crypto-related executive orders? Well, it seems like markets saw a gradual sell-off, erasin’ $816 million in long positions. As such, QCP Capital updated that Bitcoin volatility remains high, with the curve in backwardation. And if that wasn’t enough, Trump’s tariff threats added to the uncertain climate, signalin’ more volatility ahead.

While markets anticipate a potential national strategic Bitcoin stockpile, states like Texas and Massachusetts are proposin’ independent crypto reserves as markets await Trump’s potential BTC policies. Meanwhile, the trading firm also added that elevated short-term volatility would continue, with key events like the MicroStrategy shareholder vote addin’ further uncertainty.

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2025-01-21 17:56