On-chain data shows the Bitcoin sharks and whales have been accumulating during the latest price decline, a sign that could be bullish for the asset.
The holders in question are those carrying a wallet balance in the range of 10 to 10,000 BTC. At the current exchange rate of the asset, the former bound converts to $1.1 million and the latter one to $1.1 billion. Thus, the only addresses that would qualify for the range would be the ones owned by the large investors.
Now, here is the chart shared by Santiment that shows the trend in the combined supply of these Bitcoin groups over the last few months:
After bottoming a few days ago when BTC set its new ATH above $124,000, however, the metric has found a reversal, suggesting that the sharks and whales have been buying during the price drawdown that has followed.
In total, investors falling inside this range have loaded up on 20,061 BTC (worth $2.3 billion) since August 13th. On a long-term scale, the two cohorts have bought a combined 225,320 BTC ($26.1 billion) since March 22nd.
“There has been notable correlation between this group’s holdings and the direction of future price movement for the majority of the past five years,” explains the analytics firm. It now remains to be seen whether the same would hold true this time as well, with the shark and whale accumulation potentially leading to another price surge.
“The number of Bitcoin treasury company buyers continues to fall, now at 2.8 per day despite price hitting ATHs,” notes Edwards. “Is the tradfi cap-raising world reaching saturation, or is this just a dip?”
At the time of writing, Bitcoin is floating around $115,500, down 3% over the last seven days.
