Bitcoin whales signal accumulation trend while fear subsides

Over the past 20 months, the number of large Bitcoin wallet holders has increased by 8.1%, based on Santiment data. The surge comes after 2022’s bear market as large Bitcoin transactions and price stability now underline positive market sentiment.

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Bitcoin signals accumulation 

Bitcoin has seen a remarkable surge in the number of addresses acquiring holdings of at least 10 BTC, marking an accumulation trend. According to data from Santiment, 11,806 more investor accounts have joined the ranks of large Bitcoin holders in the last 20 months. This signifies an 8.1% increase in large wallets since February 2022.

The previous record of Bitcoin whale wallet holdings was set in 2019, and the emergence of this new peak reflects a growing interest in Bitcoin after a bearish cycle. IntoTheBlock metric indicates that whales and large investors comprise 11% of Bitcoin trading, while 89% of volume comes from retail investors. 

However, crypto analyst Ali Martinez has noted that long-term Bitcoin holders are experiencing "fear" due to concerns of a potentially significant price correction.

Large transactions occurring in the market continue to signify an active investment base. IntoTheBlock's analysis shows that transactions with a value of $100,000 or greater over the last seven days have cumulatively amounted to nearly $37 billion.

Bitcoin whales remain active

The recent market activity was highlighted by two substantial Bitcoin transactions on a Sunday, as reported by WhaleAlert notifications. These transactions were emblematic of market movements involving over $100 million.

The first of these transactions involved the transfer of 2,818 BTC, equivalent to $75.8 million, from an unknown wallet to Coinbase. The second transfer saw 1,630 BTC, valued at $43.8 million, moving from Bybit to an unknown wallet.

Bitcoin prices also have exhibited stability with minor daily gains. Currently, the price of Bitcoin (BTC) is inching toward $28,000 only days after sliding under the $27,000 mark. Based on CoinGecko data, the trades are accompanied by a 24-hour volume of $10.7 billion after a 4% price surge over the time frame.

Additionally, an IntoTheBlock metric that gauges the average price at which these tokens were acquired and compares it to the current price reveals 67% of holders are currently in profit. The In The Money indicator shows that 10% of holders are at break-even and 22% of holders are currently in a loss position.

The market has also received a boost from the US Securities & Exchange Commission's (SEC) decision to miss the deadline for challenging Grayscale's application to convert the Bitcoin Trust Fund into an exchange-traded fund (ETF).

Also Read: Grayscale says it is 'operationally ready' for ETF as GBTC discount narrows

In the interim, Rekt Capital anticipates a potential "Road to New All-Time Highs" in the coming year, instilling medium-term optimism in the market. At the time of writing, the Bitcoin Fear & Greed Index is neutral at 47, indicating that some fear has subsided.