Abraxas Capital acquired 2,949 Bitcoin for over $250 million, signalling institutional confidence in Bitcoin amidst global trade tensions. Meanwhile, 170,000 Bitcoin from medium-term holders raised volatility concerns. Analyst predictions indicate a quieter Easter weekend may suppress price fluctuations, though recent dramatic market changes highlight potential risks.
In a notable market movement ahead of Easter, London-based Abraxas Capital has purchased 2,949 Bitcoin (BTC), valued over $250 million, within four days leading to April 19, according to crypto intelligence firm Lookonchain. This purchase is part of a broader trend where institutions and major investors, known as whales, are augmenting their Bitcoin portfolios, reflecting a sustained confidence in Bitcoin amidst global trade uncertainties.
Recently, Abraxas Capital acquired over $45 million worth of Bitcoin from Binance on April 18. This acquisition follows Michael Saylor’s Strategy, which invested $285 million in Bitcoin at an average price of $82,618 per BTC, highlighting the interests of large corporate Bitcoin holders.
The trend of Bitcoin accumulation by whales is significant as they have absorbed over 300% of Bitcoin’s annual issuance while exchanges are experiencing historic outflows. However, important movements from the medium-term Bitcoin cohort, which maintains their holdings for about three to six months, have raised concerns among analysts. Over 170,000 Bitcoin have re-entered circulation from this group, possibly indicating upcoming market volatility.
Analyst insights from Bitfinex suggest that while substantial on-chain movements can be misleading regarding weekend price impacts, current funding rates remain stable. With the US markets closed for Easter, analysts expect lower volatility unless there are significant headlines emerging.
Recent market patterns have exacerbated the fear of volatility. For example, the Mantra (OM) token witnessed a dramatic decline of over 90% on April 13, raising concerns about market manipulation and liquidity. Prior to this, Bitcoin experienced a drop below $75,000 amidst a massive sell-off in traditional equities, as highlighted by Blockstream’s CEO, Adam Back, who stated Bitcoin’s 24/7 trading can lead to significant fluctuations during low trading volume periods.
