Bitcoin reached a new all-time high of $106.5 thousand, marking a historic moment in its 16-year history. With the world’s leading cryptocurrency gaining almost 200% this year, there was one key factor contributing to this price increase.
The latest data suggests a notable increase in whale wallet activity that has taken it to a new milestone.
Bitcoin’s record finds support in whales
Since the bull rally began on October 10, the number of addresses holding at least 100 BTC has increased from 16,062 to 17,644, a net gain of 1,582 wallets, reflecting a substantial 9.9% increase in just nine weeks. .
According to Santiment analysis On Monday, this surge in whale accumulation coincided with a 77% rise in the price of Bitcoin, highlighting the strong correlation between growing investor confidence among large holders and the asset’s bullish momentum.
Latest BTC rally followed comments of President-elect Donald Trump indicating his intention to form a strategic US Bitcoin reserve similar to the country’s oil reserves.
The announcement ignited enthusiasm among cryptocurrency bulls, fueling the record rally. Many industry observers suggest that Bitcoin has entered “Santa Claus mode,” with a surge in buying as investors fear missing out and aim to allocate more funds to the asset class.
Bitcoin Santa Rally
Since the November 5 election, where Trump and numerous pro-cryptocurrency candidates won, Bitcoin has gained more than 50%.
December is historically considered a bullish month for the asset, but the “Santa Rally,” defined as gains over the last five trading days of the year and the first two of January, has shown mixed performance in the cryptocurrency market. Between 2014 and 2023, Bitcoin rallied seven times before Christmas and five times after, recording returns of 0.20% to 13.19% before Christmas and 0.33% to 10.86% after Christmas.
However, the pattern remains inconsistent; For example, in 2017, Bitcoin plunged 21.30% before Christmas during the post-ICO market correction. Still, December as a whole has averaged returns of 9.48%, according to CoinGecko. recommendations.
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