Bitcoin whales on a buying spree, triggering a supply squeeze

Bitcoin (BTC) whales, led by institutional investors, have accelerated their accumulation pace in the past few weeks through April 16.​

Over the past four days, Bitcoin whales acquired 10,000 BTC, valued at about $750 million, according to on-chain analytics from Santiment. As such, this group of investors increased their BTC holdings to 5.17 million coins, worth approximately $383.36 billion at press time.

The purchase acceleration coincided with renewed demand for U.S. spot Bitcoin exchange-traded funds (ETFs), led by BlackRock’s IBIT, as Finbold noted. During the past 30 days, BTC whales purchased around 270,000 units, according to an analysis by the Bitfinex crypto exchange.

Bitcoin whales fuel a supply squeeze

The recent surge in BTC demand from whale investors has triggered a supply squeeze across all cryptocurrency exchanges. Investors accelerated their BTC withdrawals from crypto exchanges in the last few weeks to reach a new year-to-date (YTD) low of roughly 2.68 million Bitcoins at the time of publication, based on data from CryptoQuant.

Notably, Bitcoin investors have been accumulating relentlessly in the past two months, hence reducing the BTC exchange supply at a faster pace. Essentially, long-term Bitcoin investors have been buying the dip in anticipation of a near-term bull rally.

What’s next for the BTC price?

Following the sharp uptick in Bitcoin accumulation in the past 30 days, the BTC price has attempted a reversal. The flagship coin rebounded from its lows of approximately $65,000 to reach a local high of $75,000 this week.

However, BTC price recently faced significant resistance around $75,000, which can only be broken by a sustained whale accumulation.