Bitcoin whales have surged to 1,678, a level not seen since January 2021, indicating significant accumulation. 

According to data from Glassnode, a leading blockchain and cryptocurrency analytics firm, and André Dragosch, director and head of research for Europe at Bitwise, wallets containing 1,000 or more BTC have seen a notable uptrend this year.

BREAKING: Total number of #Bitcoin whales just reached the highest level since Jan 2021! 🐳

Latest data by @glassnode show that there are 1,678 entities that are considered to be whales.

Whales are defined as network entities that control at least 1k BTC.

New ATHs incoming? pic.twitter.com/q49AeUDWj2

— André Dragosch, PhD | Bitcoin & Macro ⚡ (@Andre_Dragosch) October 23, 2024

The accumulation of Bitcoin by whales serves as a key indicator of market sentiment, signaling growing confidence in the asset’s long-term value.  The increase in whale accumulation indicates increasing confidence in the asset’s long-term value proposition, thereby reducing selling pressure and laying the groundwork for potential price appreciation.

Institutional Investment Drives Growth in Whale Wallets

The surge in whale wallets can be attributed, in part, to the sustained influx of institutional capital into the Bitcoin market, which is increasingly seeking exposure to Bitcoin’s potential for growth, store of value, and diversification benefits, thereby driving meaningful momentum in the market.

For instance, business intelligence and analytics firm, MicroStrategy, started its Bitcoin journey in 2020 after the company’s CEO, Michael Saylor, became interested in the crypto asset and saw its potential as a store of value and hedge against inflation.

The company made its first Bitcoin investment that same year and bought 21,454 BTC at an average cost of $11,700 per coin, with the total purchase worth about $250 million at the time of purchase.

Sentiment Reports Massive Whale Moves

The recent spikes in whale activity for major assets like ApeCoin (APE) and SushiSwap (SUSHI) as trades exceeding $1 million, often precede significant price fluctuations.

ApeCoin (APE), a token associated with the Bored Ape Yacht Club (BAYC) ecosystem, is currently priced at $1.23. Over the past week, whale activity involving APE has increased by more than five times its usual volume.

This substantial surge in institutional interest is a significant indicator, as historically, whale activity has often foreshadowed bullish price breakouts. When these large investors accumulate tokens during periods of underperformance, a price rally frequently follows.

Notably, the current price of APE is significantly lower than its all-time high of $27.60, reached in April 2022. This gap between the current price and its previous peak makes the recent whale activity particularly intriguing.

Meanwhile, SushiSwap (SUSHI), a decentralized exchange platform, is currently trading at $0.58. Similar to APE, SushiSwap has also witnessed a notable increase in whale transactions.

Unlike APE, SushiSwap has demonstrated some resilience in the market, holding its ground against market volatility. However, the surge in whale activity raises the possibility of a potential price correction in the future.