Bitcoin whales have been returning massively to the market after a protracted hiatus. Whale wallets, specifically wallets holding over 1000 BTC, are returning in their droves to the market.
Bitcoin whales make notable entrance into the market
According to on-chain data from Glassnode noted by the pseudonymous market commentator on Twitter, BTC_Archieve, the whale activity is the biggest trend reversal in over one year. The metric peaked back in January 2021 at around 2.1k entities and has been in a decline until recently.
The elevated activity has been on the back of the price of Bitcoin putting up a strong rally. Bitcoin is trading at around $44,610, up 0.94% in the last 24 hours, and 6.67% in the last week.
Going by analysis from Bloomberg, the market has even more upside potential as Bitcoin can build on its recent gains. Citing the Fibonacci extensions technical indicator, Bloomberg says that if Bitcoin breaks through its high of $45,300 from early March, then price targets of $50,450 and $54,300 are the next levels to reach.
Bitcoin is tracing a pattern that suggests the world’s largest digital token could build on its recent gains… That suggests a momentum tailwind for Bitcoin, Bloomberg wrote.
Bitcoin adoption driving up price
Meanwhile, the Bitcoin network has also been hitting other milestones and scoring new adoption. The network just set a new record in holders, reaching 40 million wallets per data from IntoTheBlock.
The adoption growth rate has been positively correlated with price movements the on-chain analysis firm points out. This is a confirmation of the expectations of multiple market opinion leaders including Galaxy Digital’s CEO Mike Novogratz.
Similarly, Terra has been identified as one of the market whales adopting Bitcoin. The blockchain network’s foundation, LUNA Foundation Guard (LFG) has so far purchased around 11,700 Bitcoin which is worth around $523 million.
The market is on the lookout for even more adoption as Russia reports reveal that Russia is considering accepting Bitcoin as payment for sales of crude oil. Pavel Zavalny, who heads Russia’s State Duma committee on energy, recently said the country was considering all alternatives available to evade growing sanctions, and Bitcoin was on the table too.