Bitcoin hints at a sustainable rally following institutional and whale accumulation

• Bitcoin has traded between $107,000 and $110,000 since its new all-time high, suggesting market sentiment is cooling.

• Despite Bitcoin reaching new highs, several growth metrics remained subdued.

• The rally was sponsored by institutional and whale accumulation, as opposed to retail-driven FOMO, indicating a more sustainable uptrend.

Bitcoin (BTC) traded at $109,880 on Tuesday as whales doubled down on the recent price correction despite a lack of growth in key metrics.

Bitcoin whales and institutional buying activities could lead to a sustained uptrend

Bitcoin has been trading between $107,000 and $110,000, maintaining a pullback from its all-time high of $111,970 as market momentum cools.

Bitcoin's recent rally was driven by increased institutional and whale accumulation over the past week, resulting in $2.9 billion in inflows into US spot Bitcoin exchange-traded funds (ETFs).

These investors have also taken advantage of Bitcoin's recent decline below $110,000 to increase their holdings. The number of Bitcoin whales holding at least 1,000 BTC climbed to 1,455, even as the asset reached a new all-time high, according to Glassnode data.

This closely aligns with the average Accumulation Trend Score, which rose to 0.93 last week, indicating strong accumulation activity, according to a report from Bitwise Europe. Long-term holders (LTHs) are also contributing to the buying behavior, particularly the "top half of Bitcoin wallets."

LTHs holding between 100 and 1,000 BTC led the inflows, while whales withdrew more than 124,000 BTC from exchanges. As a result, exchange reserves dropped to 14.9% of the total supply, marking their lowest level since December 2022. This suggests a more sustained demand among this cohort.

Price rallies driven by institutional investors and whales are often more sustainable than retail-driven FOMO rallies. Institutional investors often adopt a long-term strategic plan, whereas retail traders sometimes react to short-term market hype and momentum.

However, despite Bitcoin reaching a new all-time high, key growth metrics remain muted compared to previous rallies, indicating that broader market participation remains weak.

Bitcoin's funding rates saw a modest uptick as the asset climbed to new all-time highs, yet it remained relatively subdued compared to previous rallies, during which funding levels had quickly overheated, noted Bitwise analysts.

Furthermore, retail interest in BTC appears to be weaker than during previous rallies. Google Trends data shows Bitcoin's search interest score at just 37, a significant decline from the peak score of 100 recorded in November.

This drop suggests that Bitcoin's current price movement has been driven by less hype and more solid demand.