Markets
Here’s how much BTC large Bitcoin holders bought in five months amid market volatility
Large investors have actively accumulated Bitcoin during market downturns, potentially viewing them as buying opportunities and then selling them during periods of market recovery or anticipation of greater institutional adoption.
Data shows that the collective holdings of Bitcoin wallets containing at least 10 BTC have increased significantly over the past five months. In fact, this group was found to have added 154,560 BTC during the same period.
- According to the latest analyses from Santiment, the buildup of large “sharks” (also known as large investors) and “whales” began during a market decline in October 2019, continuing beyond the COVID scare and into early 2022. This has subsequently pushed the asset price above a new overall level. time above $60,000.
- Mid-2022 saw the start of mass dumping as US interest rates wreaked havoc across markets and dragged BTC below $17,000.
- This period lasted until December 2023, after which aggressive sharks and whales began to accumulate, likely in anticipation of greater institutional investment. This was shortly before the approval of Bitcoin ETFs in January this year.
- The addition of another 154,560 BTC over the past five months to the end of 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 dump their BTC stash, it often indicates the start of a prolonged bear market.
- Additionally, 50% of the total BTC supply from another group of long-term holders, who hold BTC for 1-2 years, remained idle for more than a year, suggesting reluctance to sell their tokens for quick profits.
- These observations indicate that bitcoin may be poised for a new peak in the near term, with some experts predicting this could happen between October 2024 and March 2025.