Bitcoin’s price continues to move between bullish and bearish territory, reflecting ongoing uncertainty in the market. After reaching $94,000 earlier this week, the cryptocurrency has since retreated below $90,000, marking an approximately 18% drop from its all-time high (ATH) of $109,000 recorded in January.
This latest pullback highlights the shifting sentiment among investors and the increasing influence of large holders, or whales, in the market.
Whales Are Finally Back, Data Shows
CryptoQuant analyst Darkfost has identified a notable trend in Bitcoin whale behavior, revealing that these influential market participants had been reducing their holdings for over a month, marking the longest period of net decline in the past year.
However, recent data indicates that whales are beginning to increase their Bitcoin holdings again, shifting the monthly percentage change into positive territory.
If this trend continues, it could signal a potential return of bullish momentum, as previous instances of whale accumulation have often preceded upward price movements. According to Darkfost’s analysis, whales play a crucial role in shaping Bitcoin’s price direction due to the sheer volume of BTC they control.
Whales are finally back.
Whales have been reducing their holdings for over a month now, marking the longest period of net decline over the past year.
However, their behavior has recently shifted, as whales began increasing their holdings again, pushing the monthly percentage… pic.twitter.com/SA8Ww9CEsH
— Darkfost (@Darkfost_Coc) March 6, 2025
Their renewed accumulation suggests confidence in the asset’s long-term value. Historically, increased whale buying activity has coincided with periods of price stability or growth, making this a key indicator for traders and investors.
Coinciding With US Bitcoin Reserve Plans
The resurgence of whale interest in BTC coincides with reports of US President Donald Trump signing an executive order to establish a strategic Bitcoin reserve.
CryptoQuant analyst Maartuun has provided insights into this development, suggesting that the United States could officially become a long-term holder of Bitcoin.
The reserve may be funded using seized BTC, which currently stands at 188,898 BTC, valued at approximately $18.14 billion. If implemented, this move could significantly reduce selling pressure in the market, as these holdings would be secured rather than liquidated.
In addition to securing its existing Bitcoin holdings, reports suggest that the US government may consider purchasing additional BTC. Maartuun citing Bloomberg disclosed that this initiative could lead to an expansion of the strategic BTC reserve, reinforcing Bitcoin’s status as a long-term asset for institutional and sovereign investors.
According to Maartuun, if these reports materialize, it could introduce a new dynamic to Bitcoin’s supply and demand, potentially influencing its price trajectory.
Featured image created with DALL-E, Chart from TradingView