March 28, 2024

Bitcoin whales have increased their assets during the depreciation of BTC

Bitcoin whales have increased their assets during the depreciation of BTC

A new report compiled by Santiment showed that over the past few years, the number of Bitcoin whale addressesgradually increased. Rising hoarding levels and mentality can reduce the impact of short-term bearish factors and, in the long term, drive up the price of BTC.

Bitcoin whales are considered to be individuals or organizations that have at least 1,000 Bitcoins in a single address. Recently, the number of such addresses reached an all-time high, according to a report from Santiment.

Bitcoin whales have increased their assets during the depreciation of BTC

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As shown in the chart above, the whales were accumulating BTC and hooking up to parabolic price increases in 2017. However, as prices began to fall, the whales began to dump their coins.

The trend changed when at the end of 2018the price of Bitcoin (BTC) dropped below $ 4,000. Since then, the number of addresses containing 1,000 BTC or more has steadily increased to the current level of 2,191. The report noted that whales ramped up their purchases at the end of May.

&#171;The recent uptrend means that despite uncertain market conditions, large HODLers appear to be confident in Bitcoin's near-to-medium-term price potential.&#187;

Although the Santiment indicates that the amountBitcoin retail investors have increased dramatically since 2015, still accounting for less than 15% of total Bitcoin supply. The remaining 85.3% is distributed between addresses from 10 BTC to 1 million coins.

Bitcoin whales have increased their assets during the depreciation of BTC

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According to Santiment experts, similar behavior with a predominance of whales is also observed among altcoins:

&#171;Of the 855 entities for which we track on-chain data, 727&gt; 50% of their total supply is located in the top 100 addresses&#187;.

The company presented a metric that receivedthe title Average Dollars Invested Age (MDIA), which implies an ongoing hodling cycle that began in the summer of 2019. MDIA "shows the average number of days that all coins remained at their current addresses, normalized by the number of 'dollars' spent on purchasing each coin."

The company noted that the MDIA metric has "caught every major BTC cycle so far." If MDIA is growing, as it is now, it signals a “network-wide accumulation trend,” and vice versa.

Bitcoin whales have increased their assets during the depreciation of BTC

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At the same time, the researchers claim thatOver the past 30 days, this indicator has reached a plateau, which indicates a gradual profit taking by some long-term hodlers. Such a sell-off could lead to a sharp decline in prices, as happened recently when Bitcoin fell from $ 12,400 to $ 10,000 in 48 hours.

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Bitcoin whales have increased their assets during the depreciation of BTC

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