Bitcoin Whales Back At Accumulation, Buy 20,000 BTC
On-chain data shows that Bitcoin whales have returned to accumulation mode recently, a sign that could be bullish for the cryptocurrency’s price.
Bitcoin whales have bought 20,000 BTC in the last two days
According to data from on-chain analytics firm Holy, the month-long eviction of the whales appears to be over. The relevant indicator here is the “BTC Supply Distribution”, which tells us about the amount and percentage of the total circulating supply of Bitcoin that is currently being held by each wallet group in the industry.
Wallets are divided into these wallet groups based on the total number of coins they currently carry in their balances. For example, the 1-10 coin cohort includes all addresses that hold between 1 and 10 BTC.
If the Supply Distribution metric is applied to that particular group, it will sum up the values held by all wallets on the blockchain that satisfy that condition and calculate what part of the total supply that sum represents.
Now, in the context of the current discussion, the segment of interest is the 100-1000 coin group. The chart below shows the trend in Bitcoin Supply Distribution for this specific cohort.
The value of the metric seems to have been rising in recent days | Source: CryptoQuant
As the range of this group of wallets includes very large amounts ($2.92 million at the lower end, $292 million at the upper end), likely address holders that fall into this cohort would be whales.
Whales are an important part of the Bitcoin ecosystem due to the large amount of supplies they have. Because they hold a significant portion of supply, they are able to cause perceptible effects on price through their movements.
In the chart above, it is visible that the BTC Supply Distribution of these huge investors started to drop in mid-March, suggesting that the whales were selling their coins.
While this sell-off was taking place, the price of the cryptocurrency stopped rising and reached a plateau around the $28,000 level. Recently, however, the dumping of these holders has stopped, as the price of the asset has seen a further increase.
In recent days, the supply distribution of the Bitcoin whales has even reversed its trajectory, as these investors have added around 20,000 BTC ($585.3 million) to their combined portfolios.
With this latest accumulation by the whales, their total holdings reached a value of around 3.88 million BTC ($113.4 billion), which is around 20.07% of the entire supply of BTC in circulation.
As is clear from the chart, this amount is still notably lower than what Bitcoin whales were carrying before the start of the sell-off in March. However, it is still some positive recovery in its reserves.
The accumulation of these huge holders could be a sign that they have a bullish conviction about cryptocurrency at the moment, which is naturally something that could be constructive for the market in the longer term.
BTC price
At the time of writing, Bitcoin is trading around $29,300, down 2% over the past week.
Looks like the value of the asset has taken a plunge during the past day | Source: BTCUSD on TradingView
Featured Image by Todd Cravens at Unsplash.com, Charts by TradingView.com, CryptoQuant.com