Whales with 1k-10k BTC have accumulated

On-chain data shows that the number of Bitcoin whales with 1k to 10k BTC in their wallets has increased recently, suggesting that investors have been accumulating crypto.

Bitcoin UTXO count value bands show signs of accumulation in the market

As pointed out by an analyst in a CryptoQuant post, it appears that there has been accumulation in the BTC market in recent days.

The relevant indicator here is “UTXO Count Value Bands”, which basically tells us what percentage of Bitcoin wallets fall into which of the different value bands.

Here, the “value bands” refer to the number of coins held in the wallet. For example, the 100-1k BTC group includes all addresses that contain between one hundred and one thousand coins.

The value band of importance in the current discussion is the 1k-10k group. Here is a chart showing the trend in the UTXO count for this value band over the last couple of years:

The value of the metric seems to have been on the rise during recent weeks | Source: CryptoQuant

As you can see in the graph above, the percentage of Bitcoin wallets with balances in the 1k to 10k BTC range had decreased between June and September.

During the last month, however, the trend seems to have changed, and the indicator has now gained somewhat.

This means that whales have been actively accumulating recently and filling up their wallets enough to get within this value band.

The chart also highlights the pattern in the metric during the build-up to the bull in early 2021 and then over the run itself.

It looks like the Bitcoin UTXO count for this value band started to increase in the months leading up to the bull run, reaching a high peak value around the beginning of it.

Shortly after that, however, as the bull began to reach its highs, the metric began to decline, suggesting that whales were dumping their coins.

If this previous trend is anything to go by, the latest upward path in the indicator could prove to be bullish for the value of Bitcoin.

BTC price

At the time of writing, Bitcoin’s price is hovering around $20.4k, down 1% in the last week. Over the past month, the crypto has risen 6% in value.

The chart below shows the trend in the price of the coin over the last five days.

The value of the crypto has been gradually going downhill over the last few days | Source: BTCUSD on TradingView

Featured image from Jaunathan Gagnon on Unsplash.com, charts from TradingView.com, CryptoQuant.com