Crypto Assets Present Strategic Buying Opportunity for First Time in 5 Years as Whales Accelerate Accumulation

▲ Bitcoin (BTC)

Bitcoin (BTC) has fallen to a historic production cost level, showing signs of forming a bottom, while institutional accumulation is strengthening, signaling entry into a massive energy consolidation phase for a long-term explosive rally.

On February 16 (local time), cryptocurrency analyst Dan Gambardello stated on his YouTube channel that the current digital asset market presents a strategic buying opportunity not seen in five years. Gambardello analyzed that Bitcoin’s Net Unrealized Profit/Loss (NUPL) indicator has entered the fear and capitulation zone that historically appeared at previous bear market bottoms, sending a strong buy signal. On-chain data shows Bitcoin’s NUPL currently stands at 43, a level very similar to January 2015 when it recorded 40 near the market bottom.

Ethereum (ETH) has also returned to its 2021 price levels, suggesting a complete market reset is underway. Gambardello emphasized that Ethereum’s risk model score is currently 19, and historically, when it reached this range, there was a 92% probability that the price would be higher one year later. Bitcoin’s decline to its lower production cost level is also considered an extremely rare signal, previously seen only during the 50% plunge in early 2019 and the COVID-19 shutdown bottom in 2020.

As short-term bearish factors dissipate, optimism is gaining strength. Crypto analyst Tom Lee predicted that the current downturn, often referred to as a crypto winter, has either already ended or will conclude by April at the latest. Coinbase CEO Brian Armstrong also noted that retail investors have recently been buying the dip, emphasizing that “digital assets are transforming the financial system, and it is becoming increasingly hard to find skeptics.” Financial advisor Ric Edelman projected that if just 1% of global assets flow into Bitcoin, its price could reach $500,000.

Institutional developments and shifts in the macroeconomic cycle are also noteworthy variables. With the probability of the U.S. crypto market structure bill (CLARITY) passing rising to 72%, a completed regulatory framework is expected to trigger full-scale institutional capital inflows. Asset manager BlackRock confirmed that institutions have been heavily accumulating Bitcoin during the latest downturn and noted that most investors in its spot Bitcoin ETF, iBIT, are long-term holders. The Purchasing Managers’ Index (PMI) is also signaling economic expansion, which could serve as additional momentum for the crypto market.

As the Donald Trump administration explores adding Bitcoin as a national reserve asset, the status of digital assets is becoming more firmly established. Crypto experts agree that periods of depressed investor sentiment and minimal market interest represent a golden opportunity for accumulation. Despite moving in tandem with risk assets in the stock market, Bitcoin continues to solidify its position as an independent store of value. With sweeping regulatory implementation and institutional capital poised to converge, this is a critical moment for thorough risk management and strategic positioning ahead of a new bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any losses resulting from investment decisions based on this content. The information provided should be interpreted for informational purposes only.*