Bitcoin Whale Addresses Are Accumulating – What It Could Mean for Price
Of the $123.13 million withdrawn from the cryptocurrency market in the last 24 hours, Bitcoin [BTC] liquidations in the same period amounted to 25.30 million dollars, data from Coinglass revealed.
At the time of writing, the king coin changed hands at $19,857.00. It last traded at this level in July when the bulls took over the market and initiated an uptrend.
Since FUD was thrown into the market by Jerome Powell’s comment on Friday (August 19), BTC had fallen by 7%.
According to data from Sentimentdespite the consistent decline in the price of BTC, key whale addresses have increased their BTC holdings over the past month.
However, in the last 30 days, addresses with between 100 and 10,000 BTC have grown by 103. This brings the cumulative addresses on the BTC network with between 100 and 10,000 BTC to 15,847 addresses.
According to Santiment, this is a positive sign as:
“There is a correlation between BTC’s price and the number of addresses holding 100 to 10k $BTC.”
Source: Sentiment
A crucial question to ask is whether this will be enough to drive up the price of BTC in the short term. Let’s look at other calculations for clarity.
30-day chain analysis
Over the past 30 days, the price of BTC started to fall around August 13 after marking a high of $24,424. Three days later, unique addresses that traded the royal coin daily also began to decline.
Since Powell’s comments, daily active addresses on the BTC network have fallen by 79%. Over the past 30 days, this has decreased by 81%, data from Santiment showed.
It is known that while the past performance of an asset’s daily active addresses is not indicative of what to expect in the future, sustained price appreciation has often gone hand in hand with increasing address activity. This means that the network is healthy and there is an accelerating value transfer between different investors.
Should this decline in daily active addresses on the BTC network continue, BTC’s price logging of significant price growth in the short term may be far-fetched.
Source: Sentiment
In addition, a sustainable price increase for a crypto-asset is highly correlated with an increase in its social activity. A popular social metric to consider in this regard is weighted sentiment.
This shows the average sentiment/market sentiment towards any asset. On a 30-day average, as the price per BTC gradually fell, a bearish atmosphere came over the market. Therefore, a negative value of -0.28 was recorded by the coin’s weighted sentiment metric.
Source: Sentiment
Despite the general decline in the crypto market caused by the general decline in the financial market, investors remain bullish on BTC.
According to data from Santiment, the total amount of BTC found on exchanges has dropped from 10.18% of Bitcoin’s total circulating supply to 9.07% in the last 30 days.
This continued decline is capable of inducing a “supply shock”, which could send BTC’s price up in the short term if overall demand remains unchanged.
Source: Sentiment
