Bitcoin whales are accumulating again as prices stabilize around USD 71,000. This development comes as Trump proposes a multinational coalition (the “Hormuz Coalition”) aimed at breaking Iran’s blockade of a crucial waterway. U.S. officials have also confirmed that they’re considering deploying ground forces to capture Iran’s oil hub at Kharg Island.
Bitcoin Whales Dive In as Geopolitical Tensions Rise
Bitcoin whale wallets (wallets with a balance between 10 and 10,000 BTC) now account for 68.17% of all Bitcoins, up from 68.07% a week ago, according to Santiment data. This increase marks a strong ‘bullish signal’, a decisive reversal from March 6, when whales dumped 66% of their recent accumulation as Bitcoin briefly touched USD 74,000.
The timing is striking, they say: The timing of these increased whale accumulations corresponds closely with the escalating U.S. military operations against Iran to protect the supply of crude oil to other nations around the globe. Approximately 21% of crude oil nowadays passes through the Strait of Hormuz. The U.S. has already destroyed Iranian bases that were being used as supply routes to and from Kharg Island, as well as destroyed oil infrastructure at those bases. More announcements are expected this week by Donald Trump on the proposed ‘Hormuz Coalition.’
Many Bitcoin whales have purposely and strategically treated the current unrest in Iran as an opportunity to accumulate. Bitcoin is also showing strength in the exchange-traded fund (ETF) sector, with a pull-in of USD 760 million of fresh capital in just 5 days. Institutional adoption/demand is building up again in silence. This demand comes mainly from BlackRock’s iShares Bitcoin Trust ETF (IBIT), showing that big players are still in the game.
The Retail Factor
At this point, Santiment cautions that a sustainable bottom requires retail investors to capitulate while whales accumulate (meaning, coins moving from “uncertain hands into more committed ones.”
On the other hand, the Crypto Fear & Greed Index remains in Fear (24) per Coinglass, indicating that retail has not yet begun to become optimistic, even when the price shows some consolidation and accumulation phase.
