The recent choppy consolidation in bitcoin’s price action has left many market players feeling anxious. Despite this uncertainty, some holders of the world’s largest cryptocurrency asset are actually increasing their holdings. Bitcoin whales, particularly those holding between 100 and 1,000 BTC, have shown a significant uptick in accumulation. Over the past six weeks, these whales have accumulated an additional 94.7K BTC, according to a recent report by Santiment. This surge in accumulation is happening during a period of heightened price volatility that has caused many traders to exit the crypto market.
While retail investors and smaller players may be rattled by the market’s ups and downs, these key stakeholders are taking advantage of the downturn to bolster their positions. This increase in holdings among bitcoin whales could potentially signal a bullish outlook among those who hold significant market influence, as indicated by the crypto analytic platform’s findings. Following bitcoin’s all-time high in March, the market witnessed a phase of supply distribution involving wallets of various sizes.
Leading up to the peak, on-chain intelligence platform Glassnode reported that Long-Term Holders (LTH) had been reducing their holdings. However, in a reversal of this trend, LTH have started accumulating again, with an additional 374,000 BTC moving into LTH status in the last three months. This shift is seen as a sign that investors are now more inclined to hold onto their BTC rather than selling, despite market uncertainty.
Bitcoin is currently trading near $61,000, following a 4% surge in the past 24 hours. Experts speculate that major sell-offs for BTC may be coming to an end. In an interview with CNBC on August 19, Matthew Sigel, VanEck’s head of digital assets research, pointed to seasonal patterns that bitcoin typically follows post-halving. He noted that with the recent wave of forced selling behind us, BTC is entering a phase that historically poses challenges for its price performance. The period following a halving event, which occurred in April this cycle, has historically been tough for bitcoin’s price performance.
The recent increase in bitcoin whale holdings, coupled with the shift in behavior among Long-Term Holders, may indicate a growing confidence in the cryptocurrency among key market players. While the market still faces challenges, particularly during the post-halving phase, the actions of these large holders suggest a potential bullish outlook for bitcoin’s future performance. As the market continues to navigate uncertainties, the confidence and behavior of these major stakeholders could play a significant role in shaping bitcoin’s trajectory in the coming months.
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