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This Bitcoin Metric is “One of the Leading Cryptocurrency Indicators”: Santiment — TradingView News
On-chain analytics firm Santiment explained how this Bitcoin indicator has been one of the major leading indicators in the cryptocurrency market.
Bitcoin investor holdings of at least 10 BTC may be price-correlated
In a new post on X, Santiment discussed a metric that has historically been one of the industry’s leading indicators. The metric in question is the total amount of supply held by Bitcoin investors carrying at least 10 BTC in their wallets.
At the current cryptocurrency exchange rate, this limit is equivalent to approximately $683,000. Therefore, investors holding sums of this size or larger would be larger than typical retail holders.
Key groups such as sharks and whales fall into this range. These cohorts are generally considered influential beings, so it’s worth keeping an eye on their behavior.
While the 10+ BTC group does not exclusively include these large investors, the trend of its holdings would at least partially encapsulate what these key holders would do.
Now, here’s a chart showing the trend of the combined holdings of investors who have maintained a balance in this range over the past few years:
BTC News
As shown in the chart above, the supply of Bitcoin held by investors belonging to this group has increased recently, suggesting that accumulation by large holders has occurred.
According to Santiment, historically there has been a pattern between price and investor behavior falling within this range. “When cryptocurrencies accumulate, they increase. When they unload, extended bear markets arrive,” explains the analyst firm.
Examples of this trend are also visible in the graph. The supply held by this group began increasing in October 2019 and has continued to increase during the bull run that followed in 2021.
In February 2022, however, the behavior of these Bitcoin investors changed, as their combined holdings began to decline instead. This led to the bear market.
The decline stopped after the collapse of FTX in November 2022 and the holdings of these investors began a sideways movement in 2023. At the end of the year, another change finally occurred as the parameter gained an upward trend.
This accumulation likely began due to the impending approval of spot exchange traded funds (ETFs) in January. These investors maintained this buying pressure even after the approval, culminating in the rally to a new all-time high (ATH).
Despite the difficulties that Bitcoin has faced recently, the trend of the indicator has not reversed. Therefore, if the historical pattern is to continue, there could be more bullish price action for the asset.
Bitcoin price
Bitcoin has recently started moving sideways again, with its price currently trading around $68,300.