March 2025 marked a significant time for the Bitcoin market, as whales returned to active buying after a year of reduced activity. This could have a substantial impact on the market.
The Impact of Whale Activity on Bitcoin Price
The Bitcoin whale community maintained approximately 8 million BTC over the past four years, despite price fluctuations. However, as the total market value of Bitcoin surpassed $9 million, it triggered a reduction in whale holdings. Their balance declined to 6.8 million BTC as they sold off 1.2 million BTC, causing market-wide price depreciation due to increased supply. Now, whales have re-entered the buying mode by purchasing 62,000 BTC in March, which might stabilize the market prices.
New Investors and Supply Absorption
Since February 2023, new investors have accumulated 172,705 BTC, suggesting robust demand even at higher price levels. This indicates that investors are willing to acquire Bitcoin at current prices. Historically, Bitcoin generally sustains or raises its value when there is persistent market demand, despite expanded supply. Following the FTX collapse, the cryptocurrency entered an accumulation phase, facilitating market recovery and starting a new bull cycle. Nevertheless, a price drop could occur if supply outpaces demand.
$84K Retest: Possible Scenarios
Currently, Bitcoin is at the crucial $84,000 support zone. If it closes above this level, it could advance to $96,000 and beyond. However, failure to secure this level may lead to additional price drops and a search for new support zones. The next significant support point after a potential drop is $80,000, which could trigger forced sales, increasing market volatility. Meanwhile, improving macroeconomic conditions, such as the US bank credit supply index, support a bullish trend in the long term.
The activity of whales and their purchase of large BTC volumes in 2025 indicates potential market stabilization and growth. However, the outcome will depend on the balance between supply and demand, alongside macroeconomic factors.
