Big Money Holders Have Been Stocking Up on Bitcoin
Recent data from on-chain analytics firm Santiment indicates that significant Bitcoin holders have been actively accumulating more BTC despite the recent market downturn. These large holders, including whales and mega whales, have shown a consistent trend of increasing their Bitcoin holdings since the beginning of March.
Understanding Supply Distribution
The Supply Distribution metric categorizes Bitcoin addresses based on the number of coins they hold. This classification allows for a better understanding of how different groups of investors are behaving in the market. Key cohorts include:
- 1-10 BTC: Small retail investors
- 100-1,000 BTC: Sharks
- 1,000-10,000 BTC: Whales
- 10,000-100,000 BTC: Mega Whales
Bitcoin Supply Distribution Trends
The data shows that all these major holders have been increasing their Bitcoin holdings over the past few months. Specifically:
- Sharks bought 43,489 BTC (~$2.72 billion)
- Whales bought 80,544 BTC (~$5.04 billion)
- Mega whales bought 91,732 BTC (~$5.75 billion)
Analysis of Buying Behavior
Looking at the chart depicting the Bitcoin Supply Distribution trends, it is clear that different categories of investors have been buying and selling at varying points:
- Mega whales engaged in aggressive accumulation before the price rally to a new all-time high (ATH)
- Whales sold some BTC at the ATH and only began buying after the subsequent drawdown
- Sharks consistently bought throughout the rally towards the ATH
Implications for the Market
It seems likely that the ATH rally was largely driven by substantial purchases from mega whales, who continue to hold onto their coins despite minor sell-offs. This accumulation trend by major holders has been a key factor in supporting Bitcoin prices amidst recent bearish movements.
Current Bitcoin Price
As of the latest data, Bitcoin is trading around $62,600, experiencing a more than 11% decrease over the past week.
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