Crypto exchange Bitfinex says whales are gobbling up tens of billions of dollars in Bitcoin, as BTC bears provide fuel for a potential short squeeze.
Citing data from digital analytics firm CryptoQuant, Bitfinex says whales have accumulated more than $20.266 billion worth of BTC in just a month.
Bitfinex notes that the whale activity represents the cohort’s largest BTC accumulation haul in 13 years.
“Whales accumulated 270,000 BTC in 30 days, the largest buying spree since 2013.
Exchange reserves are at their lowest since December 2017.
The supply to meet new demand is shrinking.”
Data from the prominent crypto analytics firm Glassnode shows that the massive whale accumulation comes as Bitcoin bears aggressively bet that BTC will continue to see downside momentum.
A negative funding rate indicates that traders are heavily shorting BTC, which could trigger a short squeeze if Bitcoin moves higher.
Short sellers borrow coins or shares to sell, betting on a collapse so they can buy the assets back at a lower price to pocket the difference. But when the market moves against them, they are forced to buy the assets back at a higher price, fueling further rallies and triggering a short squeeze.
Taken together, the setup appears to be bullish for Bitcoin, as the massive whale accumulation has reduced the available supply for sale while BTC shorts are piling up.
Earlier this week, Wall Street veteran Jordi Visser said if Bitcoin shatters $76,000, it would mark the start of a sustainable surge.
Bitcoin is trading at $75,065 at time of publishing.
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