Bitcoin is Seeing Significant Accumulation Despite Market Concerns

Large Bitcoin investors, referred to as “sharks” (those holding between 100 to 1,000 BTC), are purchasing the cryptocurrency at an unprecedented rate not seen since 2013, as reported by analytics firm Glassnode. This accumulation is taking place in a market that is witnessing a correction from highs approaching $98,000 to roughly $87,900.

Key Highlights:

• Major holders are utilizing the market dip to increase their investments, showcasing their long-term confidence in Bitcoin.
• Analysts are cautioning about the possibility of a bull trap that could result in a significant price drop.

Bitcoin Sharks Accelerate Accumulation

According to recent data, these major holders are not fazed by the price drop, viewing the current situation as a buying opportunity. They include early investors and institutional traders aiming for future gains. Historically, spikes in shark accumulations have often preceded significant rallies, including instances where Bitcoin experienced gains of approximately 160% within a year.

Analysts Predict Potential Price Drop

Despite the bullish activity among large holders, analysts are warning that Bitcoin might experience a decline to as low as $35,000 in February, following a structure reminiscent of the price action in 2021. Analyst Lofty noted a “perfect bull trap” that followed a failure to maintain above critical price thresholds.

Top cryptocurrency firms, however, counter this bearish outlook, suggesting that Bitcoin’s established price cycles may no longer apply, predicting a return to record highs fueled by institutional investments by mid-2026.