Whales Accumulate Bitcoin Amid Market Downturn

Despite a bearish trend in Bitcoin (BTC), large holders, or whales, have resumed significant accumulation, withdrawing thousands of BTC during the recent market downturn. Notably, Cumberland and Galaxy Digital have withdrawn considerable amounts, reflecting a broader trend where institutional investors have acquired over 34,000 BTC since late December, signaling renewed buying pressure. Analysts suggest that this accumulation is part of a recovery phase as these investors leverage price corrections to increase their holdings, utilizing strategies like time-weighted average price (TWAP). Additionally, Bitcoin's supply crunch continues with exchange reserves declining to a two-year low, indicating that both institutional and individual investors are preferring self-custody over keeping BTC on exchanges. Market sentiment remains optimistic, with expectations of pro-crypto policies and increased nation-state adoption potentially driving Bitcoin's price higher in the coming years. Thus, while short-term fluctuations persist, the long-term outlook appears bullish as institutional interest in Bitcoin remains robust.