According to analysts, a significant number of Bitcoin whales purchased a record 270,000 BTC, worth $16.2 billion at an average price of $59,000 per coin in June 2021. This represents the highest level of accumulation in Bitcoin’s history, surpassing the levels observed during both the pandemic and the collapse of FTX.
Unprecedented Accumulation by Whales
In June, Bitcoin whales purchased a total of 270,000 BTC worth $16.2 billion, making it the biggest acquisition month ever recorded for this asset, according to data provided on the Lark Davis channel. In this instance, the whales bought BTC at around $59,000 — showing significant confidence in the future value of Bitcoin, especially considering their actions during the COVID-19-related panic.
Furthermore, this occurred during a negative crypto market trend while retail investors were rushing to sell their positions. The two groups of participants displayed typical behavior for crypto market cycles, with experienced investors buying the asset while novices exited from it.
Retail Panic and ETF Outflows
In contrast to the accumulation of Bitcoin by whales, small-time investors have moved in exactly the opposite direction. June 2023 recorded an all-time high of $4.5 billion in Bitcoin ETF product outflows, thus portraying mass hysteria among retail investors. Furthermore, a massive amount of selling from short-term holders occurred, creating a panic selling situation and causing prices to drop.
According to Lark Davis, such situations, in which whales purchase during periods of weakness caused by retail panic, have historically marked turning points in the market. Therefore, the record high ETF outflows coupled with the accumulation of BTC by whales indicate that there may be a transfer of BTC from weak hands to strong hands.
Market Bottom Signals: Analyst Perspectives
As analysts quoted by Lark Davis say, the bearish prediction that Bitcoin could fall to $40,000 by October may not materialize. If this does not happen, then the current whale activity is expected to mark the start of a market bottom. Long-term holders of Bitcoin have stopped selling their coins, indicating that they have become more patient regarding price volatility. This is a behavior usually observed near the end of a bear market.
Another factor supporting this case is the US Manufacturing PMI, which returned above the level of 50 in June. This shows that the US economy is starting to grow again and may attract demand for risk assets, including Bitcoin. If whale accumulation continues, analysts think there will not be a need for any major crash to create a base for the market after its crash stage.
Source — Lark Davis: https://www.youtube.com/watch?v=HTEBNBPLBYc