Bitcoin Price Recovery and Investor Activity
Recently, ETF investors have been more engaged in the market.
Bitcoin has notably bounced back—about $10,000—in the last week, recovering from a multi-month low of just under $81,000 to over $93,000 on Friday, before settling around $91,000.
As for who’s driving this surge, it seems to be largely driven by “whales,” or large investors, according to on-chain data.
Whales Buying, Retail Investors on the Sidelines?
Data from Crypto Rover indicates a marked increase in activity from a significant number of investors. Their moves have closely mirrored the price changes in Bitcoin over recent weeks, including a notable sell-off earlier in October that saw the price shoot up past $126,000 before plunging $15,000 in a few days.
Interestingly, the data highlights a substantial accumulation of Bitcoin following its steep decline of $25,000 in just one week, dropping below $81,000.
Whales are buying Bitcoin! 🚨
Meanwhile, smaller investors seem to be more passive. The same analyst observed that over the past year, retail investors have largely vanished, a trend reflected in Google search data.
Bitcoin retail traders have essentially done nothing over the past year.
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Global searches for terms like “Bitcoin” and “Buy Bitcoin” have seen occasional spikes this past year, but overall interest remains far from the peaks seen in the bull runs of 2017 or 2021.
ETF Investors Are Returning
A potentially positive sign for Bitcoin’s price trajectory is the resurgence of investors turning to spot Bitcoin ETFs. Financial institutions faced significant challenges last month, particularly with large withdrawals from various funds, including BlackRock’s IBIT.
Last week marked a modest improvement, being the most favorable period since early October. Following a net withdrawal of $151 million on Monday, investors injected $128.7 million on Tuesday, $21.1 million on Wednesday, and $71.4 million on Friday, due to Thursday being a US holiday.
The week concluded with a net inflow of $70.2 million, a significant improvement compared to the previous week’s outflows of $1.2 billion.
