Bitcoin’s Large Holders Accumulate BTC Ahead of Price Surge
Recent on-chain data from Santiment reveals that large investors in Bitcoin have been accumulating the cryptocurrency. The data shows a significant increase in the number of BTC investors holding between 100 and 1,000 BTC, indicating a rapid expansion in their combined holdings.
These investors, known as sharks and smaller whales, now hold a substantial amount of Bitcoin, ranging from $2.78 million to $27.8 million at the current exchange rate. The Supply Distribution chart provided by Santiment illustrates the trend in Bitcoin holdings for this address range over the past few months.
The chart shows a sharp jump in the Supply Distribution of this group, with a 16% increase in the number of sharks/small whales within a 24-hour period. This is the largest increase seen in this metric in over a year and a half.
Interpretation and BTC Price Movement
There are two possible interpretations of this trend: either smaller investors accumulated enough BTC to join this cohort or larger groups distributed some of their holdings into this range.
The data also reveals that as the 100-1,000 coins group rose, the 10-100 coins group experienced a decline, suggesting that buying activity did occur in the market. Smaller investors increased their holdings enough to move into the larger group.
Interestingly, Bitcoin has witnessed a rally towards the $28,000 level since this accumulation occurred. It is possible that this buying pressure contributed to the cryptocurrency’s growth.
BTC Price Outlook
Bitcoin recently retested the $28,000 level but has retraced slightly. If large investors continue to support the upward momentum in the coming days, it is likely that Bitcoin will make another attempt at breaking the $28,000 mark.
Hot Take: Large Investors Accumulating Bitcoin Signals Bullish Sentiment
The recent accumulation of Bitcoin by large investors, as indicated by on-chain data, suggests a bullish sentiment in the market. The increase in the number of sharks/small whales and the corresponding decline in the 10-100 coins group indicates active buying activity.
This accumulation coincided with a rally in Bitcoin’s price, further supporting the notion that this buying pressure contributed to the cryptocurrency’s growth. If large investors continue to support the market, Bitcoin is likely to make another attempt at reaching and surpassing the $28,000 level in the near future.
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