Bitcoin (BTC) Market Buzzes with Excitement as Weekly Inflows Hit $100,000

Bitcoin enthusiasts are buzzing with excitement as the cryptocurrency market witnesses a remarkable shift. With unprecedented $100,000 weekly Bitcoin inflows

Bitcoin enthusiasts are buzzing with excitement as the cryptocurrency market witnesses a remarkable shift. With unprecedented $100,000 weekly Bitcoin inflows recorded so far in 2024, significantly higher than the $70,000 annual inflows during the 2021 bull run, speculation about a potential new bull market is rife.

Whale Wallets and OTC Markets Dominate

One of the most significant trends contributing to this surge is the dominance of over-the-counter (OTC) markets over centralized exchanges. Crypto Quant CEO Ki Young Ju highlighted this trend, noting that whale wallets—those holding more than 1,000 BTC, including custodial wallets and spot Bitcoin ETFs—have accumulated a staggering 1.45 million BTC this year alone. This accumulation has propelled the total whale holdings to over 1.8 million BTC.

Ju emphasized that this surge is not a mere internal reshuffling of existing custodial wallets. Instead, it reflects a genuine increase in new whale wallets (those holding BTC for less than 155 days), while the balance of older whale wallets (holding BTC for over 155 days) remains steady.

"This year, 1.45 million BTC have been accumulated by whales (wallets holding 1K BTC and above, including custodial wallets + spot Bitcoin ETFs). Now, the total whale holdings are 1.8 million BTC. This is not a reshuffling within custodial wallets. New whale wallets (BTC less than 155 days) are increasing, while the balance of old whale wallets (BTC over 155 days) is not changing much," explained Ju.

Institutional Interest and ETF Inflows

The recent Bitcoin rally past $65,000 has been fueled by strong inflows into spot Bitcoin ETFs and aggressive buying by institutional players and BTC whales. This trend was particularly evident during the early July BTC correction, when institutional investors seized the opportunity to accumulate more Bitcoin at lower prices.

"Bitcoin price dropped to $63.8K on early July. During this correction, institutional investors (like Citadel) and BTC whales (wallets holding 1K to 10K BTC) continued to buy Bitcoin heavily. This support helped Bitcoin price to quickly recover from the correction and continue the bull rally," noted On-chain College.

Analyzing Bitcoin’s Price Action

Bitcoin’s price has experienced significant volatility recently. After a robust rally that saw BTC prices soar more than 20% from the lows of $53,500, the cryptocurrency faced a partial retracement. As of the latest data, Bitcoin is trading at $64,581, down 1.5%, with a market cap of $1.274 trillion.

Prominent crypto analyst Peter Brandt has pointed out that despite the recent bounce, Bitcoin’s chart continues to exhibit a pattern of lower highs and lower lows. He cautioned investors, stating, “While I am impressed by the current bounce in Bitcoin, it should be noted that the sequence of lower highs and lower lows continues despite the halving, despite the ETF, despite the hype.”

The Role of On-Chain Metrics

On-chain metrics have also played a crucial role in shaping market sentiment. According to On-chain College, a brief dip below the BTC Momentum indicator was observed, which served to shake out less convicted investors, reset sentiment, and potentially set up the next rally.

"A short period of less conviction was observed as BTC Momentum dipped below the lower Bollinger Bands, shaking out less convicted investors and resetting sentiment for the next rally. Now, the indicator is showing signs of bottoming out, which could lead to a potential bullish setup," explained On-chain College.

The Impact of Mt. Gox Redistribution

The redistribution of Bitcoin from the Mt. Gox exchange has added another layer of complexity to the current market dynamics. The long-awaited redistribution has injected volatility into the market, contributing to price fluctuations as creditors receive their BTC.

"Bitcoin price rose to $64K as creditors received another round of BTC from the Mt. Gox exchange. After the redistribution began, Bitcoin price has shown signs of volatility, and the market sentiment has also been impacted by this event," noted On-chain College.

What Lies Ahead for Bitcoin?

As the market digests these developments, the question on everyone’s mind is whether the current $100,000 weekly Bitcoin inflows will indeed set the stage for a new bull run. While past performance is not indicative of future results, the signs are promising.

Crypto Quant CEO Ki Young Ju remains optimistic, suggesting that the current accumulation trend among whale wallets could be a harbinger of positive price action in the coming months. If institutional interest continues to grow and OTC markets maintain their dominance, Bitcoin could be poised for a significant upward trajectory.

"The good news is that whales are still accumulating Bitcoin, which

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