Bitcoin Nears $80K as Whales Accumulate, ETF Inflows Fuel Rally: Experts

Bitcoin's price surged past $79,000 on Friday, marking its highest point since May and a four-day winning streak. Large Bitcoin holders increased their positions and institutional investors began rejoining the market. Analysts cited improved liquidity, positive regulatory sentiment, and heightened interest from major investors as factors driving the rally.

Simon-Peter Massabni, head of business development at XS.com, highlighted that entities holding over 10,000 BTC amassed more than 30,000 Bitcoin in one day and over 55,000 Bitcoin in the past month. The total holdings of such whales have now surpassed 300,000 BTC, a level not seen since November 2024. Spot Bitcoin exchange-traded funds (ETFs) saw over $1.6 billion in net inflows this week, signaling a strong weekly performance since October.

Bitcoin futures activity also increased, with open interest reaching $54 billion, a $10 billion increase from its low in late June. The rally was fueled by a major wave of short position liquidations, reaching $2.7 billion in a single day and $1.6 billion in subsequent positions. Cloud, an analyst at HTX Research, emphasized that the rally went beyond a typical technical rebound, driven by favorable financial conditions, regulatory developments, and institutional buying.

He identified $76,000 as a crucial level; a breakout above it could propel Bitcoin to $80,000, while $72,000 represents the first major support, and $66,600 remains the key foundation of the bullish structure. However, Massabni cautioned that unresolved geopolitical tensions, especially between the US and Iran, could lead to rising inflation and bond yields, potentially causing a sharp market correction.