Amidst Bitcoin's ascent above $70,000, recent on-chain data reveals whales holding strong, with 2,104 unique addresses now holding at least 1,000 Bitcoin. Though shy of 2021's peak, this growth is notable as retail interest surges, propelling BTC's spot trading volume to a 12-month high. Key metrics indicate a parabolic rise in whales' Bitcoin holdings, signaling confidence in an upward market trajectory.

Analysts emphasize the significance of these metrics in gauging market sentiment, with notable increases in transfers from exchanges to whales and rising retail activity. As Bitcoin targets $92,500, the market remains dynamic, influenced by technical, on-chain, and fundamental indicators.

Bitcoin Whales Signal Bullish Momentum: Surging Wallet Count, Parabolic Transfers, and Record ETF Inflows

Cointelegraph reports that as of March 7, the number of unique addresses holding at least 1,000 Bitcoin, also known as whales, had risen to 2,104.

However, this is still lower than the previous record of 2,489 addresses set in February 2021, when Bitcoin traded above $46,000. The rising wallet count could also be attributed to the US spot Bitcoin exchange-traded funds (ETFs), which had a cumulative trading volume of $52.5 billion on March 4.

The fact that whales are not selling their Bitcoin at these prices suggests that they believe prices will rise further. Bitcoin whales are essential because the size of their trades significantly impacts price. Julio Moreno, the head of research at on-chain intelligence firm CryptoQuant, also noted the growth in a March 7 X post.

Moreno stated, "The growth of whales' Bitcoin holdings is going parabolic."

Several metrics measuring volumes between whales and exchanges provide evidence that Bitcoin whales are not rushing to dump their holdings. According to Glassnode data, transfers from exchanges to whales have "gone parabolic" this month, reaching new record highs.

Meanwhile, transfer volume from whales to exchanges has increased slightly compared to previous bull and bear market periods. These metrics indicate a significant influx of new investors into Bitcoin, with little evidence of profit-taking by wealthy investors despite record-high BTC prices.

On a fundamental level, spot Bitcoin ETFs in the United States continue to drive demand for Bitcoin. For example, the BlackRock iShares Bitcoin Trust (IBIT) saw its highest daily inflows of $788 million on March 5.

In addition to the report, based on technical, on-chain, and fundamental indicators, Bitcoin's next big target could be $92,500. Notably, Bitcoin charts recently showed a triangular formation resembling a bull pennant, widely regarded as a bullish continuation pattern.

Bitcoin Soars in Retail Surge: Record Spot Trading, ETF Inflows, and South Korea's Premium

On March 5, bitcoin spot trading volume across centralized exchanges reached its highest level in a year, with a combined daily volume of $46.26 billion. This indicates that more retail investors have begun to buy the world's first cryptocurrency.

Following the yearly high, Bitcoin spot trading volume fell to $31.32 billion on March 6, with Binance accounting for more than 74%, or $18 billion, of total daily volume.

"People are buying Bitcoin. Spot trading volume has shot up almost 680% since the start of the year," according to a March 6 X post by Mallika Kollar, quantitative research associate at Bitwise.

The year-to-date record trading volume was accompanied by a new all-time high in daily inflows for spot Bitcoin exchange-traded funds. On March 5, the ten-spot Bitcoin ETFs in the United States set a new daily trading volume record of $10 billion, surpassing the previous week's record of $7.7 billion.

"These are bananas numbers for ETFs under [two months] old," Bloomberg ETF analyst Eric Balchunas stated in a March 5 X post about the figures.

Soaring volumes across exchanges and ETFs propelled Bitcoin's price to a new all-time high of more than $69,200 on March 5. According to CoinMarketCap data, Bitcoin increased by 1.09% in the 24 hours preceding 1:30 p.m. UTC, trading at $66,878.

Retail interest is surging in South Korea, where Bitcoin reached $72,000 (based on the KRW/USD exchange rate) on March 5 on Upbit, the country's largest cryptocurrency exchange. This price difference is known as the Kimchi premium or Korea premium index, and it has been rising alongside the BTC price since early February.

Because South Korea has no approved spot Bitcoin ETFs, retail spot buying is most likely the primary cause of the premium.

Photo: André François McKenzie/Unsplash