On-chain data shows that Bitcoin whales have accumulated $1.4 billion in the asset over 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 in Twitter, BTC whales have been displaying hoarding behavior recently. The relevant indicator here is the “Bitcoin distribution of supplies”, which is a metric from on-chain analytics firm Santiment that tells us which wallet groups in the market hold what amount of crypto right now.
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 that have a balance of at least 10 and at most 100 BTC. The supply distribution metric for this specific pool would show the combined number of coins that are present in these wallets right now.
In the context of the present topic, the group of wallets of interest is the group of 1,000-10,000 coins. Here is a chart showing the trend in supply distribution for this Bitcoin cohort over the last month:
The value of the metric seems to have observed some rise in recent days | Source: Ali on Twitter
The pool of 1,000-10,000 coin wallets is an important cohort for BTC, as it includes addresses that belong to the Whales. Since the balances of these investors are huge (the lower and upper limits of the range become $22.9 million and $229 million, respectively, at current exchange rates), movements in this cohort can sometimes have visible effects on the crypto price.
As can be seen in the chart above, the amount of Bitcoin held by the whales decreased during December, suggesting that these giant holders were selling their coins at the time. However, earlier this year the metric bottomed out and since then this cohort has shown net income accumulation conduct.
Interestingly, while this buying by the whales is taking place, the crypto price has seen a strong rally. About five days ago, this BTC rally experienced its first significant pullback, and on the chart, it is visible that these investors engaged in some selling around it.
However, in recent days, the 1,000-10,000 BTC pool of wallets have once again made some purchases, as their supply distribution curve has spiked once again. After this latest accumulation, BTC has once again taken a strong 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 holding to 4.62 million BTC ($105.8 billion).
Bitcoin price
At the time of writing, Bitcoin is trading around $22,900, up 10% in 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 by Todd Cravens on Unsplash.com, Charts from TradingView.com, Santiment.net
