Bitcoin whales have been quietly expanding their positions, with on-chain data from Santiment showing that wallets holding between 100 and 1,000 BTC accumulated 113,950 BTC since mid-July. Their collective balance now stands at about 5.24 million BTC, an increase of roughly 2.22% over the period.
The accumulation matters because this wallet cohort is often seen as a proxy for smart money or larger market participants. Santiment has tracked the group for five years and noted that similar heavy accumulation phases have frequently appeared before or during stronger Bitcoin price moves. The data also indicates that the recent rally is not being driven solely by retail traders. However, Santiment cautioned that wallet balances do not necessarily reflect individual owners, since one investor may control several addresses or an exchange or custodian may hold assets on behalf of many customers.
Bitcoin tapped $87,000 earlier this week for the first time since January, before retracing to stabilize near $84,000. The asset broke back above its 365-day moving average around $80,500, a move not seen since March 2023, when the price later pushed much higher. Bitcoin also climbed through a heavy supply zone between $76,000 and $81,000. The next major resistance sits between $88,000 and $90,000, where a large amount of BTC is concentrated.
Institutional flows are adding to the momentum. US spot Bitcoin ETF inflows attracted almost $1 billion on Monday, with smaller inflows recorded in the following two sessions. CryptoQuant founder Ki Young Ju expects the current cycle to deliver a 3-to-5x rally rather than another 10x surge, citing a softer bear market and rising institutional interest. However, Trace Finance co-founder Bernardo Brites cautioned that the speed of the recovery was partly driven by a short squeeze. He added that Bitcoin rallying through a rate hike, $100 oil and elevated yields suggests some investors are treating it as a hedge against inflation, fiscal and geopolitical risk rather than a broad return of risk appetite.
Brites said the next test is whether ETF inflows continue. If demand stays strong and stablecoin supply begins growing again, the rally could have a stronger base. Otherwise, if ETFs remain the only engine, the move may be vulnerable and Bitcoin could give back part of its gains as positioning normalizes.
