Data shows that institutions heavily accumulated Bitcoin in the $12,000 to $15,000 range and according to analysts at Whalemap, this is a positive trend because institutions and whales typically accumulate assets with a longer-term investment strategy in mind.
The fact that larger hands are accumulating BTC instead of retail investors also explains the somewhat suppressed mainstream interest in Bitcoin, as Cointelegraph previously reported. Various metrics, including Google Trends, have shown lackluster mainstream demand for BTC despite its parabolic rally in recent months.
Institutional ‘FOMO’ makes the current BTC rally stronger than previous cycles
Whalemap analysts described the recent spike in demand for Bitcoin from whales as “institutional FOMO.”
FOMO, short for fear of missing out, refers to a trend wherein investors increasingly buy into an asset fearing it would continuously surge. Referring to a chart showing whale clusters and inflows into whale wallets, the analysts said:
“These are the levels and this is what institutional fomo looks like.”