On-chain data shows that Bitcoin whales have accumulated $1.4 billion in assets in the past two weeks, a sign that could be bullish for the coin.
Bitcoin Whales added 70,000 BTC to their holdings in two weeks
As noted by an analyst on Twitter, BTC whales have been exhibiting accumulation behavior lately. The relevant indicator here is the “Bitcoin Distribution of the offerThis is a stat from on-chain analytics firm Santiment that tells us which wallet groups in the market are currently holding what amount of crypto.
Wallets are divided into these groups based on the total number of coins they currently hold. For example, the 10-100 coin cohort includes all wallets with a minimum balance of 10 and a maximum of 100 BTC. The Supply Distribution metric for this particular group would then show the combined number of coins currently held in these wallets.
In the context of the present topic, the portfolio group of interest is the 1,000-10,000 coin group. Here is a chart showing the supply distribution trend for this Bitcoin cohort over the past month:
The value of the metric seems to have observed some rise in recent days | Source: Ali on Twitter
The wallet group of 1,000-10,000 coins is an important cohort for BTC as it contains addresses belonging to the whales. Since the balances of these investors are huge (the lower and upper limits of the range convert to $22.9 million and $229 million, respectively, at the current exchange rate), movements of this cohort can sometimes have visible effects on the price of the cryptocurrency.
As can be seen in the chart above, the amount of Bitcoin held by the whales dropped in December, suggesting that these giant holders then sold their coins. However, the metric bottomed out early this year and this cohort has been net ever since accumulation behaviour.
Interestingly, while this buying of the whales has taken place, the price of the crypto has seen a sharp rise. About five days ago, this BTC rally saw its first significant pullback, and the chart shows that these investors participated in some selling around it.
However, in the past few days, the 1,000-10,000 BTC wallet group has been making some purchases again as their supply distribution curve has risen again. After this latest accumulation, BTC has once again caught a sharp uptrend, as the price of the coin has now risen to almost $23,000.
In total, these whales have added more than $1.4 billion worth of coins to their holdings in recent weeks, bringing their total holdings to 4.62 million BTC ($105.8 billion).
BTC price
At the time of writing, Bitcoin is trading around $22,900, up 10% over the past week.
Looks like the value of the crypto has been moving sideways just below the $23,000 level recently | Source: BTCUSD on TradingView
Featured image of Todd Cravens on Unsplash.com, charts from TradingView.com, Santiment.net