Bitcoin Whales Scoop Up 34,000 BTC After December Dip, Analysts Say

Large institutional investors have been aggressively accumulating Bitcoin since its price plummeted toward the end of December 2024, after reaching a record high above $108,000 earlier in the month, according to Cauê Oliveira, head of research at Blocktrends. In his analysis posted on CryptoQuant on January 8, Oliveira reveals that more than 34,000 BTC—currently valued at approximately $3.2 billion—has been purchased by large holders, providing significant buying pressure and contributing to Bitcoin’s current price recovery.

December Correction Sparks Buying Opportunity

The wave of institutional buying comes after a sharp sell-off in the wake of Bitcoin’s all-time high in mid-December. Bitcoin hit a peak of over $108,000 on December 17, following a US Federal Reserve interest rate cut, which spurred a brief rally. However, this price spike was followed by a significant 79,000 BTC sell-off from wallets holding between 1,000 to 10,000 BTC, just days after the high. The selling activity caused Bitcoin’s price to correct by around 15%.

This correction, however, provided an opportunity for larger institutional players. Oliveira notes that large investors began accumulating Bitcoin below the $95,000 price level, breaking up their purchases into smaller trades to avoid market disruption. These moves are believed to have contributed to the recent recovery in Bitcoin’s price.

As of now, Bitcoin is trading at around $94,900, a slight decline of approximately 2.3% on the day, mirroring the broader crypto market’s downtrend. The dip can be attributed to US economic data and job reports that dampened expectations of further interest rate cuts in the coming months.

Shrinking Sell-Side Liquidity and Market Recovery

Analysts from Bitfinex also observed in a January 6 market note that sell-side liquidity in the Bitcoin market is rapidly decreasing. This shrinking liquidity, combined with reduced downward pressure on Bitcoin’s price, suggests that the worst of the market correction may be over. As the sell-offs subside, institutional buying could continue to drive upward momentum in Bitcoin's price.

Optimistic Outlook for 2025: A Record Rally?

While Bitcoin’s short-term price movement has been influenced by various macroeconomic factors, including interest rate expectations, many analysts are forecasting a potential record-breaking rally for Bitcoin in 2025. Several factors are fueling this optimistic outlook, including expected pro-crypto policies from the incoming US President Donald Trump and increasing adoption by nation-states.

Matt Hogan, research analyst at Fidelity Digital Assets, expressed confidence in Bitcoin's future, predicting that more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin. This trend of institutional adoption is expected to provide additional support for Bitcoin’s value in the coming months.

Potential for Bitcoin to Surpass $150,000 in 2025

Further adding to the bullish sentiment, Blockware analysts recently predicted that a US Bitcoin reserve could push Bitcoin’s price to over $150,000 in the worst-case scenario. In an even more optimistic scenario, Bitcoin could surge to over $400,000 if adoption continues to accelerate and institutional demand intensifies.

Conclusion: A Strong Foundation for Bitcoin’s Future

The developments over the past few weeks illustrate the growing confidence in Bitcoin, especially among large institutional players. With whales accumulating Bitcoin at lower prices, a reduced sell-off pressure, and a more favorable outlook for Bitcoin adoption from governments and institutions, the stage is set for cryptocurrency to potentially hit new all-time highs.

As Bitcoin continues to attract both institutional and sovereign interest, 2025 may be a year where the digital asset experiences an unprecedented rally, solidifying its position as a leading global asset.