A significant shift has occurred in the Bitcoin (BTC) market as large holders, often referred to as “whales,” have ramped up their accumulation.
Bitcoin (BTC) price showed some positive movement in the last 24 hours as the price rose by over 1% to reach approximately $54,881 at the time of writing. This follows a period of consolidation where BTC price hovered around the $54,000 level.
However, the latest price increase comes as large holders, often referred to as “whales,” ramp up their accumulation. As highlighted by recent data from IntoTheBlock, Bitcoin addresses holding between 100 and 1,000 BTC now control over 4 million BTC, which represents more than 20% of the total Bitcoin supply.
This marks a significant increase in the holdings of large addresses, which stood at about 3.82 million BTC six months ago. The growing accumulation by these addresses suggests a bullish outlook and confidence in Bitcoin’s prospects over the long term.
Moreover, another key indicator of market sentiment is the trend in Bitcoin exchange reserves. According to CryptoQuant, Bitcoin reserves on exchanges have been steadily dropping.
Currently, the total exchange reserve stands at approximately 2.68 million BTC, down from around 2.93 million BTC six months ago. This decrease in exchange reserves aligns with the increase in Bitcoin accumulation by large addresses.
When Bitcoin is moved off exchanges and into private wallets, it usually signifies a long-term hold strategy rather than immediate selling or trading. This reduction in available supply on exchanges often leads to upward pressure on prices, as the reduced liquidity can drive prices higher when demand increases.
Bitcoin was trading above $60,000 when the current accumulation phase began. Early accumulators are currently holding their assets at a loss. However, if BTC price can break through the $65,000 resistance level, these early investors would enter a significant profit zone, which could further incentivise holding and accumulation.
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