Bitcoin whales back on accumulation, buy 20,000 BTC
On-chain data shows that Bitcoin whales have been back in 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 the analysis company at the chain Sentiment, the whales’ month-long dump appears to be over. The relevant indicator here is “BTC Supply Distribution”, which tells us the amount and percentage of the total Bitcoin circulating supply currently held by each wallet group in the sector.
Wallets are divided into these wallet groups based on the total number of coins that they have on balance right now. For example, the 1-10 coins cohort includes all addresses that have between 1 and 10 BTC.
If the supply distribution calculation is applied to this specific group, it will sum the amounts held by all wallets on the blockchain that satisfy this condition and calculate what portion of the total supply this sum makes up.
Now, in the context of the current discussion, the segment of interest is the 100-1000 coin group. The chart below shows the Bitcoin Supply Distribution trend for this particular cohort.
The value of the metric seems to have been rising in recent days | Source: CryptoQuant
Since the range of this wallet group includes very large amounts ($2.92 million at the lower limit, $292 million at the upper), the likely holders of addresses falling into this group would be whales.
Whales are an important part of the Bitcoin ecosystem due to the large amount of supply they own. Because they hold a significant portion of the supply, they are able to cause noticeable effects on the price through their movements.
From the graph above, it is visible that the BTC Supply Distribution to these huge investors started to decline in mid-March, which suggested that the whales were selling their coins.
While this selloff was taking place, the price of the cryptocurrency halted its rally and hit a plateau around the $28,000 level. Recently, however, dumping by these holders has stopped as the asset’s price has increased somewhat further.
Over the past couple of days, the supply distribution of the Bitcoin whales has even reversed course, as these investors have now added around 20,000 BTC ($585.3 million) to their combined wallets.
With this latest accumulation from the whales, their total holdings have now reached a value of around 3.88 million BTC ($113.4 billion), which is around 20.07% of the entire circulating BTC supply.
As the chart shows, this value is still significantly lower than what the Bitcoin whales were carrying before the March selloff began. Nevertheless, there is still some positive upturn in their reserves.
Accumulation by these huge holders could be a sign that they have a bullish belief about the cryptocurrency right now, which is naturally something that can be constructive for the market in the long term.
BTC price
At the time of writing, Bitcoin is trading around $29,300, down 2% in the last week.
Looks like the value of the asset has taken a plunge during the past day | Source: BTCUSD on TradingView
Featured image from Todd Cravens at Unsplash.com, Charts from TradingView.com, CryptoQuant.com
