Bitcoin Whales Accumulate 34K BTC After December 2024 Bitcoin Price Dip

Key Takeaways:

1. Institutional Accumulation Spurs Recovery: Large Bitcoin holders purchased over 34,000 BTC, worth $3.2 billion, after a significant market correction in December 2024, signaling renewed buying pressure.
2. Market Dip Triggers Strategic Buying: Following Bitcoin’s drop from its $108,000 peak, wallets holding 1,000–10,000 BTC executed smaller trades to build large positions below $95,000.
3. Liquidity and Sell-Side Pressure Ease: Analysts note a sharp reduction in sell-side liquidity, which could stabilize Bitcoin prices and limit further downward pressure.
4. Bullish Policies and Nation-State Adoption: Pro-crypto policies under the new U.S. administration and strategic investments by nation-states and institutions are fueling predictions of a record rally in 2025.
5. Bearish Signals Indicate Short-Term Risks: A bearish engulfing pattern and a history of limited immediate recovery after major dips suggest potential short-term corrections below $90,000.

Institutional investors are making headlines as Bitcoin whales have added over 34,000 BTC to their holdings following a market downturn in late December 2024. Blocktrends head of research, Cauê Oliveira, revealed in a recent CryptoQuant post that institutional wallets holding 1,000–10,000 BTC sold 79,000 BTC shortly after Bitcoin reached a record high of over $108,000 on December 17. This sell-off, triggered by a U.S. Federal Reserve interest rate cut, led to a 15% correction. However, large players have since taken advantage of lower prices to accumulate Bitcoin under $95,000.

Read more: Bitcoin price prediction

Institutions Signal Recovery with Strategic Buying

The late-December sell-off, which briefly pushed Bitcoin below $95,000, appears to have been a calculated move by institutional investors. Oliveira noted that “large players took advantage of the consolidation” by executing multiple smaller trades to build up significant positions in BTC. This buying activity has created substantial market support, with Bitcoin’s seven-day balance change turning positive.

Bitcoin seven-day balance change has flipped positive after a nearly 80,000 BTC sell-off in late December | Source: CryptoQuant / CoinTelegraph

As of January 7, Bitcoin was trading at approximately $94,900, reflecting a modest 2.3% daily decline amid broader market weakness following U.S. economic data that tempered hopes for further interest rate cuts. Bitfinex analysts highlighted a rapid reduction in sell-side liquidity, suggesting that downward pressure on Bitcoin’s price may have largely subsided.

Read: How to buy Bitcoin with INR

Bullish Sentiment: Could Bitcoin Rally to New Heights?

The broader sentiment around Bitcoin remains optimistic. Pro-crypto policies anticipated from U.S. President Donald Trump’s administration, coupled with increasing nation-state adoption, are fueling expectations of a robust rally in 2025. Fidelity Digital Assets research predicts growing interest from central banks, sovereign wealth funds, and government treasuries in strategic Bitcoin investments.

Blockware analysts suggest that a U.S. Bitcoin reserve could push the cryptocurrency’s price to between $150,000 and $400,000, depending on the policy’s scale and impact.

Challenges Ahead: Bearish Patterns and Price Volatility

Despite optimistic forecasts, market analysts warn of potential challenges. Bitcoin recently formed a bearish engulfing candle after briefly retesting the $100,000 mark, signaling the possibility of a correction below $90,000. Market dynamics have shifted following strong U.S. job data, which has bolstered the dollar and added pressure to the crypto market.

Crypto analyst Miles Deutscher emphasized the increasing stablecoin supply entering “price discovery,” which could boost market liquidity in the months ahead. Meanwhile, Jamie Coutts noted that Bitcoin’s resilience, even amid dollar strength, reflects robust underlying demand.

However, data shows Bitcoin’s likelihood of an immediate recovery after a 5% or greater dip is historically low, with only a 20% chance of a rebound. Analysts predict BTC could consolidate between $92,000 and $90,000 before a possible upward movement.

Conclusion

Bitcoin price’s recent market activity underscores its status as a dynamic and unpredictable asset. While institutional buying provides a strong foundation for recovery, bearish patterns suggest caution in the short term. With pro-crypto policies and increasing institutional interest on the horizon, Bitcoin’s long-term trajectory remains promising, but traders should brace for potential volatility in the coming weeks.

Source: CoinTelegraph