Bitcoin accumulation by large holders, commonly known as whales, has surged to levels not seen since before the 2020 bull market. This trend raises questions about whether Bitcoin (BTC) is set to break past the $70,000 mark.

Whale Accumulation Hits 2020 Levels

According to a recent Bitfinex research report shared with Cointelegraph, the accumulation of Bitcoin by entities holding at least 1,000 BTC has reached a nearly four-year high, reminiscent of the period leading up to the 2020 bull run. Bitfinex analysts noted:

“Adding another layer to this bullish sentiment, Bitcoin 'whales' are also accumulating Bitcoin at a pace reminiscent of the pre-2020 bull run. This accumulation, now at its highest in the last two months, has led to a new historical high in their Bitcoin balance.”

Several factors could drive this upward momentum for Bitcoin, including an anticipated interest rate cut and increased institutional buying. Bitfinex analysts suggest that increased average daily ETF buying activity, reduced selling pressure from long-term holders, and rising liquidity—potentially triggered by the expected rate cut—could further boost Bitcoin's price.

ETF Outflows and Market Dynamics

Recent activity in the Bitcoin ETF market has also been noteworthy. On June 10, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their first day of net outflows in over 19 consecutive trading days, with $64.9 million worth of outflows. This was followed by over $200 million in net outflows on June 11, according to Farside Investors.

Despite these outflows, Bitcoin has confirmed $66,000 as its new support level on the weekly chart, according to popular crypto analyst Rekt Capital. In a June 12 post on X (formerly Twitter) to his 476,000 followers, he wrote:

“Bitcoin has successfully retested the black Mid-Range as support (~$66,000) on the recent pullback. Any downside volatility below black is bonus territory.”

Short-Term Holder Realized Price and Market Reset

Additionally, Bitcoin’s short-term holder realized price rose to $63,729 on June 11, according to LookIntoBitcoin. This metric often acts as a dynamic support line during bull cycles, indicating potential support for further price increases. However, the price has remained stagnant despite the rising realized price, largely due to the distribution of older coins.

Thomas Fahrer, co-founder of Apollo, explained in a June 12 post on X:

“We simply have to wait it out until we complete the market ‘reset’ which sets a new floor. Then $65,000–$70,000 becomes a base much in the same way $10,000 became a base in 2020.”

Conclusion

As Bitcoin whale accumulation reaches pre-2020 levels, the cryptocurrency community is abuzz with speculation about a potential breakout above $70,000. Key factors such as institutional buying, interest rate cuts, and market dynamics will play crucial roles in determining whether Bitcoin can achieve this milestone. For now, market participants remain watchful, anticipating the next major move in Bitcoin's price trajectory.