Large investors have been actively accumulating Bitcoin during market downturns, potentially viewing them as buying opportunities and then selling during periods of market revival or anticipation of increased institutional adoption.
Data shows that the collective holdings of Bitcoin wallets containing at least 10 BTC have increased significantly in the past five months. In fact, this cohort was found to have added 154,560 BTC during the same period.
- According to the latest analysis by Santiment, big “shark” (also known as the large investors) and “whale” accumulation began amidst a market decline in October 2019, continuing past the COVID scare and through early 2022. This subsequently pushed the asset’s price above a new all-time high above $60,000.
- Mid-2022 witnessed the start of mass dumping as US interest rates wreaked havoc on all markets and dragged BTC down below $17,000.
- This period lasted until December 2023, after which aggressive sharks and whales started accumulating, likely in anticipation of increased institutional investment. This was just before spot Bitcoin ETF approvals in January this year.
- The addition of 154,560 more BTC over the past five months leading up to late May 2024 indicated significant accumulation by large investors during this period.
- Typically, when these large Bitcoin holders accumulate more, it tends to precede a bullish phase with rising market prices.
- On the other hand, when these holders begin to offload their BTC stash, it often indicates the onset of a prolonged bear market.
- Moreover, 50% of BTC’s total supply from another group of long-term holders, holding BTC for 1-2 years, has remained inactive for more than a year, suggesting reluctance to sell their tokens for quick gains.
- These observations indicate that bitcoin could be poised for a fresh peak in the near term, with some experts predicting this could happen between October 2024 and March 2025.
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