The recent choppy consolidation in bitcoin’s price action has left many market players anxious. Despite this, there is evidence to suggest that certain holders of the world’s largest crypto asset are ramping up their holdings. Specifically, bitcoin whales, particularly those holding between 100 and 1,000 BTC, have been increasing their positions significantly. According to Santiment’s latest findings, this group of whales has accumulated an additional 94.7K BTC over the past six weeks. This surge in accumulation comes at a time when price uncertainty is at its peak, causing many traders to exit the crypto market.
While retail and smaller investors may be feeling the pressure of volatility, these key stakeholders are leveraging the downturn to fortify their positions. This trend potentially signals a bullish outlook among those with significant market influence, as indicated by the crypto analytic platform. Following bitcoin’s all-time high in March, the market underwent a phase of supply distribution involving wallets of various sizes. Leading up to this peak, on-chain intelligence platform Glassnode observed that Long-Term Holders (LTH) had largely divested. However, a recent shift has occurred, with an additional 374,000 BTC transitioning into LTH status in the last three months. This shift hints at investors’ growing preference for holding onto their BTC rather than selling, despite prevailing uncertainty in the market.
At the time of writing, bitcoin is hovering around $61,000 after a 4% surge in the past 24 hours. Experts are cautiously optimistic about the future, believing that the major sell-offs in BTC may be a thing of the past. In a recent interview with CNBC, Matthew Sigel, the head of digital assets research at VanEck, shed light on the seasonal patterns typically observed in bitcoin following a halving event. With the recent wave of forced selling now seemingly behind us, BTC is entering a phase that historically poses challenges for its price performance. Past data indicates that bitcoin tends to struggle in the one to three months post-halving event, which took place in April during this cycle. While the immediate pressures on BTC have eased, Sigel’s insights suggest that the market could still encounter headwinds as it navigates this traditionally tricky phase.
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