A new report compiled by Santiment has revealed that over the past few yearsnumber of Bitcoin whale addresses gradually 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 with at least 1,000 bitcoins at one address.According to the Santiment report, the number of such addresses has recently become a record high.
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.
"The recent uptrend means that despite uncertain market conditions, it looks like the big hodlers have confidence in Bitcoin's near to mid-term price potential."
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.
According to Santiment experts, similar behavior with a predominance of whales is also observed among altcoins:
"Of the 855 properties we track on-chain data for, 727 have> 50% of their total supply located at 100 main addresses."
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.
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.</p>
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