Despite a significant price drop following the approval of spot ETFs, Bitcoin has witnessed an increase in wallet numbers. Investors have shown skepticism, but the latest data suggests a different trend.
Increasing Wallet Count in Bitcoin
Market analysts have noted ongoing large Bitcoin accumulations, with CryptoQuant reporting a rise in wallets holding 1,000 to 10,000 Bitcoins in January. This uptick occurred despite a 12% price decrease since the ETF approval peak.
IntoTheBlock data indicates that whale investors have expanded their holdings by 76,000 Bitcoins since the year’s start, valued at over $3 billion. Following spot ETF approvals, substantial capital inflows were anticipated, with predictions of Bitcoin reaching $100,000 by year-end and nearing $200,000 by 2025.
The optimistic outlook may encourage seasoned investors to overlook short-term fluctuations and maintain their Bitcoin accumulations. Whale accounts on Binance, for instance, show over 60% holding long positions in BTC, reflecting a bullish sentiment.
Despite a $255 million net exit from the Grayscale Bitcoin Trust ETF, other ETFs experienced a net inflow of $269 million. Since their inception, spot ETFs have garnered $756 million as of January 26, while GBTC has seen over $5 billion in outflows.