Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is for informational purposes only. U.Today is not responsible for any financial losses incurred when trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content is accurate as of the date of publication, but some offers mentioned may no longer be available.
Start of chain analysis In the block reports a major milestone reached by Bitcoin whales. The amount of Bitcoin held by addresses with more than 1,000 BTC peaked in 2023.
According to IntoTheBlock, the balance of addresses with more than 1,000 BTC reached a new yearly high this week.
Following the collapse of FTX-related Alameda Research and Genesis, the amount of Bitcoin held by addresses with more than 1,000 BTC fell precipitously.
Entities of this size have been increasing steadily since 2023, with their holdings reaching 7.67 million BTC worth $275 billion this week.
According to IntoTheBlock, the size of these holdings indicates that large Bitcoin institutions are seeing increased demand and are in a strong position.
Additionally, the amount of Bitcoin held by long-term investors hit new all-time highs this week.
Addresses that have held Bitcoin for more than a year have historically been a predictor of Bitcoin cycle advancement. This is because hodlers tend to increase their Bitcoin holdings during bear markets and at the beginning of bull markets and reduce them near previous all-time highs.
According to IntoTheBlock, the growing balance of hodlers may indicate that investors generally expect Bitcoin to rise.
Bitcoin approached $38,000 on Thursday before pulling back and trading slightly higher over the past 24 hours at $36,459. In a blog post, IntoTheBlock noted that futures market data could suggest that US entities have been among the key drivers of Bitcoin’s rise.
Deribit data suggests there is a preponderance of bullish options bets on Bitcoin, reaching $40,000 and even $45,000 by the end of December.
With call option traders willing to take the opposite side of the bet, $40,000 could become a critical test point for Bitcoin’s advance.
