BTC Price Swings, But Whales Keep Buying – What’s Next for Bitcoin?

• Santiment, a blockchain analytics platform, reported the emergence of 135 new Bitcoin wallets holding over 100 BTC each in February, following a brief dip below $100,000.
• This development comes after U.S. President Donald Trump announced that the tariff threats between the U.S., Mexico, and Canada have been temporarily paused for a month.

Bitcoin (BTC) has experienced significant price fluctuations over the last few days, with massive volatility impacting both whale and retail investor behaviors in different ways. On-chain data reveals that Bitcoin whales have been taking full advantage of the market dips following political events, notably after Donald Trump announced plans to impose large tariffs on goods, only to later state that the tariff threats between the U.S., Mexico, and Canada had been paused for a month.

As a result, 135 new whale wallets holding over 100 BTC each emerged in February, reflecting the whales’ continued accumulation despite the market downturn. These new whale wallets are seen as an important factor in the recent rebound in Bitcoin’s price after it briefly dipped below $90,000 earlier in the week.

After a period of correction, Bitcoin’s price quickly bounced back to $100K, likely driven by continued whale activity.  According to Glassnode’s Cost Basis Distribution (CBD) data, approximately 200,000 BTC have been purchased at prices above $97,500, helping provide crucial support for Bitcoin during recent downturns. This accumulation has contributed to Bitcoin’s price being stabilized above this key support level, giving it resilience amid market volatility.

Our Cost Basis Distribution (CBD) metric helps us understand how #Bitcoin investors respond to downside pressure. Looking at last month's data, we see why the price found support twice at ~$97.5K – nearly 200K $BTC was accumulated above this level: https://t.co/9YFg95gC4X pic.twitter.com/wMhAdjBNUs

— glassnode (@glassnode) February 5, 2025

Glassnode further states that ” investors with a cost basis above $99K have accumulated over 150K BTC, visible on both the monthly & weekly views. More holders are transferring their cost basis to $99K, reinforcing it as a key level.” This strong accumulation helps stabilize Bitcoin’s price above $97,500, which is significantly higher than the short-term holder cost basis of approximately $92K. If Bitcoin drops below the $97.5K mark, unrealized losses rise sharply, which increases downside risk as market sentiment weakens.

Will Increased Market Activity Push Bitcoin Above $100K?

Increased market activity has recently been observed, with Bitcoin seeing a rise in trading volume on major exchanges like Binance and Coinbase. This surge in trading volume is likely driven by whale transactions, highlighting significant market activity and an influx of larger investors.

Additionally, BlackRock, the world’s largest asset manager, announced its plans to introduce a Bitcoin exchange-traded product (ETP) in Europe. BlackRock’s entrance into the Bitcoin market is a clear signal of growing institutional interest, lending further legitimacy to Bitcoin as a mainstream asset class.

Market developments continue, with Johnny Ng Kit-chong, a Hong Kong Legislative Council member, advocating for accelerated studies into Bitcoin reserves. This move aims to ensure Hong Kong maintains its leadership in the digital economy. Moreover, Standard Chartered predicts that Bitcoin could reach as high as $500,000 by 2028 as institutional inflows rise, volatility decreases, and regulatory changes under Donald Trump expand investor access to Bitcoin.

Currently, Bitcoin’s price stands at $98,571 after dropping by 6% in the past week.