The recent choppy consolidation in bitcoin’s price has left many market players feeling uncertain. However, a particular group of bitcoin holders, known as whales, seem to be taking advantage of the situation. Data from Santiment shows that whales holding between 100 and 1,000 BTC have increased their holdings by 94.7K BTC over the past six weeks. This significant accumulation is happening during a period of high price volatility that has caused many traders to exit the market.
Following bitcoin’s all-time high in March, the market went through a phase of supply distribution among wallets of varying sizes. Glassnode observed that Long-Term Holders (LTH) had sold off their holdings leading up to the peak. However, in the last three months, LTH has been accumulating once again, with 374,000 BTC moving into this status. This change in behavior indicates that investors are now holding onto their BTC, despite market uncertainty, instead of selling off.
As of now, bitcoin is trading near $61,000, with a 4% surge in the past 24 hours. Experts, like Matthew Sigel from VanEck, believe that the major sell-offs in BTC may be coming to an end. Sigel points out that post-halving, bitcoin tends to follow seasonal patterns that could impact its price performance. While the immediate selling pressure on BTC has decreased, the market could still face challenges in the upcoming months, historically seen as a difficult phase for bitcoin’s price.
Overall, the increase in bitcoin whale holdings and the shift in behavior among Long-Term Holders suggest a strong market confidence in the future of the cryptocurrency. Despite short-term price volatility, these key stakeholders are using this opportunity to bolster their positions, potentially indicating a bullish outlook for bitcoin in the long run.
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