In the last year, the number of Bitcoins held by the largest investors has decreased.
This may show that the big money is not quite so bullish on Bitcoin, or it may show that big holders of Bitcoin are moving the cryptocurrency into less accessible storage. But a recent report says that in March, these so-called Bitcoin whales actually accumulated 62,000 Bitcoins, reversing maybe a year-long trend of these big holders shedding their Bitcoin.
Bitcoin whale balances have been trending downward for nearly a year, but March data hints at a possible reversal.
Whales now hold around 62k more BTC than they did at the start of the month, indicating renewed accumulation. pic.twitter.com/DeDstXG1Ab
— IntoTheBlock (@intotheblock) March 20, 2025
Big investors are showing renewed confidence, as indicated by the recent rise in whale activity. Some now speculate that this may mean the market is on the verge of a new bullish cycle. Another sign of developing institutional interest in the market can be seen in the Bitcoin spot ETF space, which has enjoyed a steady inflow of capital into its funds.
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Whales Return to Accumulating Bitcoin
For almost a year, Bitcoin whale balances have been dwindling, a procession that many analysts attribute to the large holders’ not-so-whale-like behavior in the face of macroeconomic uncertainty and market volatility. A recent look at the data, however, suggests that the trend may be reversing.
Accumulation has resumed in force among Bitcoin whales. They are currently holding around 62,000 more BTC than they were at the start of the month. This is a marked change from the previous months, during which accumulation stagnated and the top holders of Bitcoin began to offload the asset. These on-chain signals might mean that the worst is over for the price of Bitcoin.
It is very encouraging that big investors are amassing more Bitcoin this March. Just when we thought the crypto market might be experiencing a sort of price purgatory, it became clear that large institutional players and hedge funds are stepping back into the Bitcoin scene and possibly forking out sizable amounts of cash for it. We see these Bitcoin riches being stacked high and not being sold off in the short term, which for many of us still in the crypto space is a sign that not only are institutional bigshots buying into the idea of long-term crypto wealth, but these same bigshots also see the current Bitcoin price as a good entry point from which to begin hoarding the digital gold.
Spot ETFs Continue to See Inflows
The positive feeling about Bitcoin is being mirrored in the Bitcoin spot ETF market, which now appears to be quite strong. On March 19, the Bitcoin spot ETF net asset value was just a shade under $10 million. The net inflow into Bitcoin spot ETFs was about $8 million. This is four straight days of not just inflows but significant inflows into Bitcoin spot ETFs, and that hasn’t happened in the past. This indicates that institutional investors are getting more comfortable with actual Bitcoin as a long-term asset.
On March 19, Ethereum spot ETFs recorded a total net outflow of $11.7459 million, marking the 11th consecutive day of net outflows. Meanwhile, Bitcoin spot ETFs saw a total net inflow of $11.7984 million, extending their four-day streak of net inflows.https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) March 20, 2025
The ongoing influx of funds into spot ETFs for Bitcoin is momentous for a number of reasons. For one, it underscores the rising participation by institutions in the Bitcoin market. Spot Bitcoin ETFs are a preferred investment vehicle by institutions because they offer direct exposure to the price performance of Bitcoin, while allowing the investor not to have direct possession of the cryptocurrency itself. Given the technical complexities and the security issues involved with self-custody, a spot ETF is an ideal way for an institution to gain exposure to Bitcoin.
A second factor suggests that investors are getting ready for the next stage of Bitcoin’s market cycle. This is the inflows into spot ETFs, which have been consistent and positive. We can see that four days ago, we were on a bit of a trend with these inflows being positive; then, four days ago, we went in a straight line up to a bit of a peak. And now, even with today’s price action, which is a bit negative on the day, we’re still above this red trend line. So we went from lower highs to lower highs, and now we’re on a higher high, with prices still holding above this trend line.
What Does This Mean for Bitcoin’s Price?
The blitz by Bitcoin whale accumulation and the steady inflows into spot ETFs could be the precursor of something wonderful—a market recovery. And while it is still a little too early to call a full trend reversal, these data points suggest an increasing level of confidence in Bitcoin. If this trend keeps up, the King of Crypto could see some seriously upward price momentum soon.
When you step back and look at the big picture, something really meaningful is taking shape. It’s not just individuals buying up lots of Bitcoin and holding it (thanks a lot, whales!), but also large institutions that are getting in on the act.
What happens when big institutional investors start acting like whales? They don’t even have to be in total privacy about it—just look at the big buying and holding behavior of these guys. And then imagine what it might do to the price of Bitcoin.
Despite March’s data being encouraging, one shouldn’t lose the necessary caution. Things could still turn negative—unpredictability is the hallmark of this market. And if we dig into the potential pitfall factors, several stand out: the global economy could go south, regulatory developments could turn against us, or a sea change in investor sentiment could take the wind out of Bitcoin’s sails. If any of these external influences lean in the direction of doom, investor caution could dial up, and Bitcoin’s price could find itself heading down.
The Road Ahead for Bitcoin
As we advance deeper into 2023, the conduct of Bitcoin whales and the ongoing vigor of Bitcoin spot ETFs will serve as crucial indicators to observe. That the big players are starting to accumulate once more hints that Bitcoin might be entering a new phase of its market cycle, one during which it could very well be that the big players take center stage even more than they already do.
The next several weeks are critical for determining whether this shift in sentiment is the start of a new bullish trend. Or if it represents another short-term upswing in the ongoing volatility of the cryptocurrency market. If the whale accumulation continues, and spot ETFs see consistent inflows, Bitcoin could make a strong recovery in the near term. This outcome would likely inject a fresh wave of optimism into the larger crypto market.
At present, these trends will be watched closely by investors and analysts. They want to know if the data from March represent a turning point—a much-anticipated turnaround—for the Bitcoin market or if it simply signals an inherently unpredictable market that won’t obey any signals for long.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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