Bitcoin Whales Take Charge as Number of $100K Transactions Surge

The number of transactions of over $100,000 on the Bitcoin blockchain rose to a new year-to-date high last week.

AccessTimeIconOct 30, 2023 at 9:27 a.m. UTC
Updated Oct 30, 2023 at 9:47 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin's (BTC) onchain activity suggests whales, or investors with ample capital supply and the ability to influence market trends, have been active during the cryptocurrency’s recent move above $35,000.

The number of transactions processed on the Bitcoin blockchain involving a movement of at least $100,000 worth of BTC rose to a year-to-date high of 23,400 last week, according to data tracked by blockchain analytics firm IntoTheBlock.

The cryptocurrency's price topped the $35,000 mark last week, reaching the highest since early May 2022, according to CoinDesk data. The cryptocurrency has since traded sideways, around $34,000, boasting a 107% year-to-date gain. Prices have surged 27% this month, supposedly on the back of spot ETF optimism and increased haven demand.

"The bitcoin spot ETF applications appear to have increased whales' and institutions' appetite for bitcoin," IntoTheBlock said in a newsletter on Friday. "Transactions of over $100k had previously spiked in late June after Blackrock's ETF filing and have now surpassed that level as Bitcoin sets new yearly highs."

"The recent rise in institutional activity might be a harbinger for what comes in 2024," IntoTheBlock added.

The number of large transactions rose to a new year-to-date high last week. (IntoTheBlock)
The number of large transactions rose to a new year-to-date high last week. (IntoTheBlock) (IntoTheBlock)

The U.S. Securities and Exchange Commission (SEC) is widely expected to approve several spot-based exchange-traded funds (ETFs) early next year. Analysts expect the impending financialization of BTC through ETFs to boost the cryptocurrency's market value to $42,000 and higher.

Blockchain data show retail investors have also become more active in recent weeks.

According to data tracked by Deutsche Digital Assets, small entities' onchain activity index, a metric to gauge retail investor activity, tapped a new-year-to-date high of 1.5 last week.

"We saw an increasing activity both in small and large BTC wallet entities that implies that especially smaller investors are increasingly flocking into the market," André Dragosch, head of research at Deutsche Digital Assets, said in a note to clients. This can be seen in the significant increase in the median value of transfer volumes on the Bitcoin blockchain, which is indicative of small investor participation.

"Note that (new) small investor participation is a necessary condition for a sustained bull market in crypto assets," Dragosch added.

The chart shows renewed participation of retail investors in the bitcoin market. (Glassnode, Deutsche Digital Assets).
The chart shows renewed participation of retail investors in the bitcoin market. (Glassnode, Deutsche Digital Assets). (Glassnode, Deutsche Digital Assets)

Edited by Parikshit Mishra.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.