Two Bitcoin whales buy $142M BTC after Trump’s win

6 days ago 8

Two large Bitcoin investors, known as whales, are significantly increasing their holdings, reflecting growing interest in risk assets after Donald Trump’s win in the United States presidential election.

On Nov. 6, Trump was declared the winner of the presidential election, securing his second term, which will begin on Jan. 20, 2025.

Trump’s victory bolstered investor appetite for risk assets such as Bitcoin (BTC), which hit a new all-time high of $76,400 shortly after Trump was elected president.

A day after Trump’s victory, unknown whale wallet “bc1qh” acquired over $50.4 million worth of Bitcoin from Binance, the world’s largest centralized exchange (CEX), Arkham Intelligence data shows.

Another Bitcoin whale, address “bc1qa,” bought over $92 million worth of Bitcoin on Nov. 7. The whale’s transactions show that it only started acquiring Bitcoin the week before the US election, beginning with a $52 million BTC acquisition on Nov. 1.

The two whales have acquired $142 million worth of Bitcoin since Trump’s victory, showing the growing investor demand for Bitcoin.

Whales can significantly impact a cryptocurrency’s price action due to the high amount of market-moving capital. Traders often follow whale buying patterns for cues on a cryptocurrency’s short-term price trajectory.

The Republican president inspired more optimistic price projections. Trump’s victory could set Bitcoin on track to a rally above $100,000 before the end of 2024, Bitget Research’s chief analyst, Ryan Lee, told Cointelegraph:

“With the market capitalization of stablecoins hitting a new high and fluctuating around $160 billion, there is room for significant leverage in the market, potentially pushing BTC to reach $100,000 within the next three months.”

New Bitcoin whales started emerging a day ahead of Trump’s victory

Fresh Bitcoin whale addresses have emerged, anticipating Trump’s victory ahead of the election results.

On Nov. 6, whales acquired and withdrew over 1,806 Bitcoin worth over $132 million through 11 newly created cryptocurrency wallets.

The withdrawals from the world’s largest centralized exchange (CEX), Binance, were flagged by crypto intelligence platform Lookonchain in a Nov. 6 X post.

Options markets point to Bitcoin rally above $80,000

Showcasing the growing investor sentiment, Bitcoin hit a new all-time high of over $75,000 on Nov. 6, as traders have continued accumulating on early election results showing Trump’s lead.

While higher price volatility is widely expected after the elections, some analysts see this as necessary for the next leg up in the bull cycle.

Notably, Bitfinex analysts predict a Bitcoin rally to $80,000 before the end of 2024, driven by the options market structure and the prospect of a Republican presidential victory. The analysts told Cointelegraph:

“Options market positioning indicates that over the past few weeks, end-of-year options have seen a significant rise in call open interest. The Dec. 27 expiry and calls with an $80,000 strike price have been the primary areas of interest.”

Industry regulations for the next four years are also perceived as more optimistic, as Coinbase CEO Brian Armstrong called the current Republican Senate majority the “most pro-crypto Congress ever.”

The Republican Senate could indeed prioritize innovation-friendly crypto policies with less friction for US crypto companies, according to Andrey Lazutkin, chief technology officer and chief product officer of Tangem Wallet, who told Cointelegraph:

“Since Republicans traditionally favor fewer regulations on financial and technological industries, this could lead to a more hands-off approach toward the crypto industry, which many in the sector argue would foster innovation. We can expect a more favorable environment for companies and innovations in the crypto space.”

Some of the most anticipated innovations that the Trump administration could introduce include the first staked Ether ETF, which could come with more favorable regulation in the next four years, a Nansen analyst told Cointelegraph.

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