According to blockchain data tracked by Santiment, "whales" and "sharks"—wallets holding from 10 to 10,000 bitcoin (BTC)—have accumulated over 20,000 BTC, valued at approximately 1.2 billion USD, since 29/7. This buying activity was concentrated in the price range below 65,000 USD, where bitcoin has consistently fluctuated in recent sessions.

Santiment suggests that this increased accumulation by large investors, coupled with continued selling by smaller bitcoin holders, raises the likelihood of BTC surpassing 70,000 USD, rather than dropping below 60,000 USD.

The market analysis firm attributes the divergence between these two investor groups to several factors: the Coldcard cold wallet attack, which began on 30/7 and resulted in hackers stealing over 120 million USD in bitcoin; ongoing uncertainty surrounding the Clarity Act (a proposed US law aiming to establish a comprehensive legal framework for the digital asset market); and the prolonged sideways movement of bitcoin's price, all of which have diminished interest among retail investors.

Exchange-traded fund (ETF) inflows also indicate a recovery in institutional demand. US-listed spot bitcoin ETFs have attracted 754.69 million USD this week, according to SoSoValue, making it likely the best inflow week since April.

"The most significant change comes from institutional flows," stated Liya Kalchev, an analyst at Nexo.

Kalchev noted that spot bitcoin ETFs have drawn over 500 million USD in August, with inflows steadily increasing each session. On 5/8 alone, these funds attracted over 240 million USD, marking a significant reversal from June, which saw the ETFs' strongest monthly outflows since their launch.

However, despite large investors in the spot market and institutions via ETFs prioritizing accumulation, bitcoin's price has yet to achieve a significant rally. Kalchev suggests this indicates the types of investors currently participating in the market.

She believes some institutions may be acquiring bitcoin for short-term objectives rather than a genuine belief in a long-term uptrend. For a more convincing recovery narrative, bitcoin needs to decisively close above 65,000 USD.

Technically, bitcoin's price chart still indicates the potential for a substantial increase. However, the US Senate's likely delay in voting on the Clarity Act this month presents a hurdle for the market. The passage of the Clarity Act is seen as a potential turning point for the crypto market, aiming to establish the first comprehensive legal framework in the US and end years of regulatory ambiguity.

Tieu Gu (according to CoinDesk)