In a remarkable turn of events, Bitcoin (BTC) has surged over 13% this week, reaching a five-week high with a daily close of $71,400, a development that has had a ripple effect on the entire cryptocurrency market. According to data from IntoTheBlock, a specific group of Bitcoin investors, known as whales, have been actively accumulating the asset during this surge.

Bitcoin Whales on an Accumulation Spree
IntoTheBlock's report indicates that Bitcoin addresses holding between 1,000 and 10,000 BTC (referred to as whales) were the primary accumulators of BTC as its value exceeded $71,000. These addresses collectively added 20,000 BTC, valued at approximately $1.4 billion at current prices, to their holdings over the past seven days. This increase in BTC's price and whale accumulation aligns with continuous inflows into spot Bitcoin exchange-traded funds (ETFs), which have experienced nine consecutive days of inflows surpassing $1.75 billion.

This month, Bitcoin whales have been actively accumulating BTC amid significant market volatility. CryptoPotato reported that in early May, this investor group accumulated 15,121 BTC worth $941 million within 24 hours, raising their collective wallet balance to its highest in two weeks. In another instance, data from CryptoQuant showed that Bitcoin whales acquired 47,000 BTC worth over $2.8 billion within the 24 hours ending May 3.

The surge in BTC accumulation by whales follows a prolonged period of profit-taking, during which this group moved their assets to crypto exchanges en masse. Their unrealized profit margins had reached high levels after BTC peaked at an all-time high of $73,700 in mid-March, prompting them to sell off their assets to realize profits.

Bitcoin Retraces
Despite the aggressive accumulation by whales, Bitcoin has been declining since yesterday. CoinMarketCap data indicated that BTC was around $67,400 at the time of writing, having dropped 3.6% in the past 24 hours. Yesterday, the cryptocurrency fell by about $2,000 within minutes amid market volatility in anticipation of the U.S. Securities and Exchange Commission's (SEC) decision on eight applications for spot Ethereum ETFs. Although the SEC has approved the listing of these funds, both BTC and Ether have not seen gains as a result.

However, the increasing number of active stablecoin wallets suggests that a significant rally might be on the horizon, as investors position themselves for potential market movements. The cryptocurrency market remains dynamic and unpredictable, with Bitcoin whales playing a crucial role in shaping its trajectory through their accumulation and profit-taking strategies.