Bitcoin’s Price Surge and On-Chain Data
Bitcoin has experienced a recovery and is now trading above $44,500. But what is driving this surge? On-chain data provides some insights into the recent price action.
Bitcoin Approaches $45,000 Level
After struggling at lower levels for weeks, Bitcoin is finally showing bullish momentum. The cryptocurrency has surged over 4% in the past day and is now approaching a retest of the $45,000 level.
BTC Whales Accumulating
According to on-chain analytics firm Santiment, BTC whales have been accumulating recently. These whales are large entities that hold at least 1,000 BTC in their wallets, worth over $44.8 million at the current exchange rate.
The percentage of Bitcoin supply held by these whales has been trending up, indicating that they have been expanding their holdings. In the past four weeks alone, the whales have added 1% of the entire supply to their wallets. They now control more than 40% of the cryptocurrency’s supply, the highest in over fourteen months.
Whale Accumulation as an Impetus for Recovery
The accumulation of Bitcoin by these whales may be one of the factors driving the recent recovery. While the general market was panicking after the ETF approval struggle, these large holders were quietly buying up the supply at lower price levels.
It remains to be seen whether these whales will continue to support Bitcoin or if they will sell to realize their gains. Their actions will likely play a role in shaping Bitcoin’s future price movements.
Hot Take: Whale Accumulation and Bitcoin’s Price Recovery
The recent surge in Bitcoin’s price can be attributed to the accumulation of BTC by large entities known as whales. These whales, who hold at least 1,000 BTC in their wallets, have been expanding their holdings and now control over 40% of the cryptocurrency’s supply. This accumulation by whales has likely contributed to the recovery of Bitcoin’s price. However, it remains uncertain whether these whales will continue to support Bitcoin or if they will sell to take profits. Their actions will be crucial in determining the future direction of Bitcoin’s price.
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