Thailand and large Bitcoin holders are both making waves in the cryptocurrency space, signaling a shift in how digital assets are being utilized and perceived globally. While Thailand is piloting cryptocurrency payments in Phuket to modernize its tourism economy, institutional investors are once again accumulating Bitcoin after a significant price correction, reflecting renewed confidence in its long-term potential.
Large Bitcoin Holders Resume Accumulation Amidst Post-Correction Recovery
Bitcoin’s price trajectory has once again captured the spotlight as large-scale investors have resumed their accumulation of the cryptocurrency following a notable price correction late in 2024. After Bitcoin achieved an unprecedented six-figure milestone, its value experienced a sharp decline, spurring strategic buying activity among institutional investors. This trend signals a renewed confidence in Bitcoin’s potential for recovery and long-term growth.
Cauê Oliveira, head of research at Blocktrends, revealed in a Jan. 8 post on CryptoQuant that institutional investors have purchased over 34,000 BTC, worth approximately $3.2 billion. This influx of buying pressure comes as Bitcoin begins to recover from its December plunge. Oliveira highlighted that the accumulation follows a significant sell-off by wallets holding between 1,000 and 10,000 BTC, which collectively dumped 79,000 BTC in the week after Dec. 21.
This sell-off occurred shortly after Bitcoin reached an all-time high of over $108,000 on Dec. 17, propelled by the US Federal Reserve’s interest rate cuts. However, the rapid price correction—approximately 15%—presented a buying opportunity for strategic investors.
“Large players took advantage of the consolidation,” Oliveira explained, noting that institutional buyers executed trades in smaller increments to accumulate Bitcoin at prices below $95,000. The shift in Bitcoin’s seven-day balance change, which flipped positive after the late-December sell-off, suggests renewed buying momentum.
At the time of writing, Bitcoin is trading at around $94,265, reflecting a modest 2.57% decline over the past day. This price movement aligns with broader market trends, as disappointing US jobs and economic data have dampened expectations of additional Federal Reserve rate cuts later in January. Despite these headwinds, analysts at Bitfinex are optimistic that the worst of the downward pressure on Bitcoin's price is behind us.
In a Jan. 6 market note, Bitfinex analysts observed that sell-side liquidity in Bitcoin markets is “shrinking at a rapid pace,” suggesting that the cryptocurrency is entering a phase of stabilization and potential growth.
Optimistic Projections for 2025
Looking ahead, several experts predict that Bitcoin could be on the verge of a historic rally in 2025. The anticipated inauguration of pro-crypto policies under incoming US President Donald Trump and growing nation-state adoption of Bitcoin are expected to provide strong tailwinds for the cryptocurrency market.
Fidelity Digital Assets research analyst Matt Hogan echoed this sentiment in a Jan. 7 report, stating that “more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin.” This aligns with the views of Blockware analysts, who suggested last month that the establishment of a US Bitcoin reserve could significantly boost its price. In their projections, a worst-case scenario would see Bitcoin surpass $150,000, while a best-case scenario envisions a rise to over $400,000.
The renewed interest in Bitcoin among institutional investors is underpinned by several key factors:
Macroeconomic Shifts: With traditional monetary policies facing uncertainty, Bitcoin’s decentralized nature and fixed supply make it an attractive hedge against inflation and economic instability.
Regulatory Clarity: The expectation of more transparent and supportive regulatory frameworks under a new US administration could further enhance Bitcoin’s appeal.
Strategic Asset Allocation: As Hogan highlighted, institutional entities are increasingly recognizing Bitcoin’s potential as a long-term strategic asset, complementing their broader portfolios.
The recent resurgence of institutional Bitcoin accumulation marks a pivotal moment for the cryptocurrency as it recovers from its late-2024 correction. With significant buying pressure from large holders and optimistic forecasts for the year ahead, Bitcoin’s role as a global financial asset continues to solidify. As nation-states and institutional players deepen their involvement, the stage is set for a potentially transformative year in Bitcoin’s history.
Thailand to Pilot Cryptocurrency Payments in Phuket to Boost Tourism and Innovation
In other Bitcoins news, Thailand is set to trial cryptocurrency payments in Phuket, one of its most popular tourist destinations, as part of a groundbreaking initiative aimed at offering foreign visitors an alternative payment method. The move, announced on Jan. 8 by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, signifies a step forward in integrating digital currency into Thailand’s tourism-driven economy.
Speaking at a seminar organized by the Marketing Association of Thailand, Chunhavajira emphasized that the pilot program will operate entirely within Thailand’s existing legal framework, requiring no amendments to current laws. This assurance seeks to allay concerns about regulatory overreach while highlighting the government’s commitment to fostering innovation within the bounds of legality.
The deputy prime minister said that the program aims to make digital transactions more accessible in “tourism-focused cities” and to remain competitive to avoid missing out on business opportunities.
The program will require foreign tourists to register Bitcoin (BTC) through a Thai exchange and verify their identities before using the cryptocurrency for purchases. A clearinghouse will then convert BTC transactions into Thai baht, ensuring smooth operations for both vendors and buyers.
The trial is expected to enhance the tourism experience by providing a convenient and modern payment method, especially for tech-savvy travelers. The program is part of Thailand’s broader strategy to leverage digital innovation to boost its critical tourism sector, which has been recovering steadily following the pandemic.
To demonstrate the program's effectiveness, Pichai referenced the situation of refugees from the Russia-Ukraine conflict, who could utilize BTC to buy real estate in Thailand rather than encountering difficulties in acquiring Thai baht.
Thailand’s experimentation with cryptocurrencies in Phuket aligns with previous calls by prominent figures to advance the country’s digital asset landscape. In December 2024, former Prime Minister Thaksin Shinawatra urged the Thai government to adopt a proactive approach toward studying cryptocurrencies. Speaking at a lecture, Shinawatra advocated for sandbox experimentation to explore the potential of digital assets without immediately committing to large-scale adoption.
He also raised concerns about the possible impact of incoming US President Donald Trump’s administration, particularly regarding trade tariffs and Trump’s controversial suggestion to use Bitcoin for settling US debt.
Regulatory Evolution in Thailand’s Crypto Sector
The pilot program comes at a time of significant regulatory developments in Thailand’s cryptocurrency market. Binance Thailand CEO Nirun Fuwattananukul highlighted these changes in an October 2024 opinion piece, where he discussed the Securities and Exchange Commission's (SEC) move to expand fund investment opportunities in digital assets.
According to Fuwattananukul, the proposed regulations are designed to create a “mature ecosystem where traditional finance and digital assets coexist.” The initiative, he noted, signals Thailand’s intent to move beyond merely legitimizing Bitcoin and toward fostering a dynamic and robust financial environment.
The pilot program in Phuket is a strong indicator of Thailand’s ambition to position itself as a leader in digital finance and tourism innovation. By embracing cryptocurrencies, the country is taking a bold step toward attracting global tourists and investors who are increasingly comfortable with digital payments.
If successful, the trial could pave the way for broader adoption of cryptocurrencies across Thailand’s other major tourist hubs, further solidifying the nation’s reputation as a forward-thinking destination. Moreover, it sets a precedent for other countries looking to integrate digital currencies into their economies without overhauling existing legal structures.
Thailand’s move to pilot cryptocurrency payments in Phuket signals a progressive shift in its approach to digital finance and tourism. By leveraging Bitcoin’s global appeal, the initiative could enhance the country’s competitiveness, boost its tourism industry, and lay the groundwork for broader crypto adoption. As the pilot unfolds, it will be closely watched by both domestic stakeholders and the global cryptocurrency community, eager to see whether Thailand’s innovative gamble pays off.
