The accumulation of whales during times of distress is rarely a coincidence.
On-chain analytics support this behavior. Market conditions remain extremely concerning as geopolitical tensions between Iran and the United States triggered a 4% intraday decline in the total crypto market cap, erasing $100 billion in value.
Importantly, 70% of these outflows came from Bitcoin (BTC), putting pressure on its $62,000 support. Despite this, on-chain metrics reveal that the number of addresses holding more than 100 BTC has reached an all-time high.
Source: Bitcoin Magazine
Further underscoring this trend, LookonChain reported sustained accumulation from BlackRock, which acquired BTC for three consecutive days, resulting in a total net inflow of 9,615 BTC ($635 million).
This divergence between price action and whale behavior is significant.
From a technical perspective, the “buy fear” strategy works when whales interpret corrections as temporary. In this context, the accumulation of whales reflects a strategic repositioning aimed at capturing outsized returns.
Naturally, this begs the question: what are these whales expecting? On-chain metrics suggest that Bitcoin could be gearing up for a potential second-half rally, with informed participants effectively using volatility as an entry point while weak hands capitulate.
Smart money interprets QE as a catalyst for Bitcoin rally
The current setup shows how liquidity directly impacts sentiment.
Since mid-January, Tether’s (USDT) market cap has fallen by more than $3 billion, coinciding with Bitcoin’s nearly 35% correction. This suggests causation: liquidity outflows reduced available supplies, contributing to lower BTC prices as investors reacted to the bearish signal.
In this context, the recent increase in the US money supply M2, which reached a record level of $22.45 trillion, appears to have countered this effect. Increased liquidity is now flowing back into Bitcoin, providing long-term support.
Source: bar chart
In this environment, the accumulation of BTC whales is clearly strategic.
Building on this, DeFiLlama is posting $1 billion in new stablecoin liquidity this week, bringing the market cap to nearly $310 billion and highlighting a clear link between liquidity, stablecoin inflows, and whale positioning.
In this configuration, Bitcoin’s current technical weakness appears temporary. High liquidity is likely to drive the market higher once sentiment returns to risk appetite, which in turn strengthens BTC’s long-term potential and sets the stage for a possible second-half rally.
Final Summary
- Despite macro FUD, on-chain metrics show record holdings and institutional inflows, reflecting whales using volatility as an entry point.
- Tether outflows contributed to BTC’s recent correction, but the increase in US M2 supply is restoring liquidity, paving the way for a possible rally in the second half.
