Bitcoin (BTC USD) Whale Games: Large Investor Demand Accelerates

2024 hours have now passed since Trump announced tariff wars and Bitcoin (BTC USD) bounced back above $80,000.

More data confirmed that whale demand has been accelerating but Bitcoin did not manage to sustain Wednesday’s excitement.

Recent findings by CryptoQuant analysts revealed that whale activity has been making a comeback .

Bearish market conditions in Q1 resulted in diminished investor interest especially whales.

Market data now signals that whales holding between 1,000 BTC and 10,000 BTC have been rapidly rising in the last 30 days.

This is not far-fetched considering that Bitcoin experienced heavy discounts in the last 3 months.

Source: X

Whale, activity was bound to make a comeback at some point. However, institutional demand appears to still be sitting by the sidelines, likely waiting for market conditions to improve.

Bitcoin ETFs have been predominantly experiencing outflows since the end of March and are yet to start buying back in large amounts.

Whales Still Locked onto Short Term Profit-Taking

Many market participants expected Bitcoin to experience strong demand resurgence once tariff wars cool off.

This appeared to be the case on Wednesday when Trump announced a 90-day pause, and the markets reacted accordingly.

Bitcoin was up by over 8% on Wednesday but has since lost some of those gains and even dipped below $80,000 once more.

This outcome highlights weak bullish sentiment and therefore limited upside. Unsurprisingly, the fear and greed index only managed to push to 39, which was still in fear territory.

The main reason for this outcome was that the tariffs pause was only partial, which means the risks could still be active.

It would explain why demand was limited and the market sentiment may be the reason for the focus on short term profits.

Perhaps the outcome would have been much more in favor of a stronger recovery if the tariffs pause were completely inclusive.

The market may therefore continue to struggle with limited short term upside until a more conclusive outcome favors recovery.

Large holder net flows confirmed whale accumulation in the first week of April. However, the same metric pushed back into negative territory in the last 24 hours, confirming that whales have been taking profits.

Bitcoin large holder netflows/ source: IntoTheBlock

Whales dumping Bitcoin (BTC USD) further confirmed why BTC is still struggling stay above $80,000.

However, with the tariff wars cooling down, it is likely that demand could make a gradual comeback, and perhaps even a more explosive comeback in case of a major catalyst.

U.S Government Could Potentially Sell Gold to Buy Bitcoin (BTC USD)

A catalyst event might just be around the corner courtesy of President Trump. Recent reports have hinted that the White House could be planning to sell gold and use the proceeds to purchase Bitcoin.

Gold recently rallied to new highs courtesy of its safe haven status. This means that gold investors may start to take profits as the markets start to recovery.

According to the report, the Trump’s government intends to take some of the proceeds from the U.S gold holdings and pump them into Bitcoin.

Source: X

Such a development would be in line with Trump’s plans to make the U.S the leading country in terms of Bitcoin adoption.

It would also likely trigger a massive demand wave if the U.S government was to start aggressively purchasing BTC.

It is worth noting that this was just an idea that the White House was reportedly floating around, hence no confirmation on whether the U.S will go ahead with the plan.

However, it remains well within the realm of possibilities especially considering the unexpected manner in which Trump’s administration has been dealing with the markets.