On-chain data shows that Bitcoin sharks and whales accumulated Bitcoin ahead of the asset’s latest rise in price.
Bitcoin Investors Holding 10-10,000 BTC Buy Ahead of Rally
According to the data of the analysis company on the chain saintEven before news of Grayscale’s victory over the U.S. Securities and Exchange Commission (SEC) broke, Bitcoin bigwigs snapped up a lot of assets.
The relevant metric here is the “BTC Supply Distribution”, which tells us the total amount of Bitcoin held by each group of holders in the market in their joint wallets.
Addresses or investors are divided into these groups based on the amount of tokens they currently hold. For example, the 1 to 10 coin group includes all wallets with a balance of at least 1 BTC and at most 10 BTC.
All groups in the 10 to 10,000 BTC range are worth watching in the context of the current discussion. Holders with addresses of these sizes are often referred to as “sharks” and “whales”.
Since these investors hold large amounts of money, they can have some influence over the market. Sharks are relatively small so don’t have much power, but whales are huge and have greater relevance.
Now, here is a chart showing the supply distribution trends of these bitcoin sharks and whales over the past month:
The value of the metric seems to have registered some rise in recent days | Source: Santiment on X
As the chart above shows, before the bullish news from Grayscale, the supply of Bitcoin held by sharks and whales increased on the day.
These large investors have added around $388.3 million worth of cryptocurrencies to their wallets during this buying spree, which isn’t huge compared to their total holdings, but is still a notable one. amount.
In the graph, Santiment also appends data for another metric: “Social Volume.” This metric measures how much the asset is discussed on major social media platforms.
It can be seen that the indicator saw a huge spike when the news broke and the public became aware of Grayscale’s victory. During the crash earlier this month, there was a similarly sized spike as FUD spread across the market.
However, the peak during the previous crash coincided with a sell-off in sharks and whales (i.e. a drop in the indicator). In the case of the recent rally, that wasn’t the case, as the moves by these major shareholders came ahead of schedule.
Sharks and whales may already know the outcome of the lawsuit, so they have accumulated funds ahead of time in anticipation of a rebound. Thanks to these purchases, these investors are able to take advantage of price surges.
While Bitcoin surged to $28,000 during the rally, it has since pulled back to the $27,100 level. Still, BTC investors are up 3% since the surge began.
Looks like the BTC price has surged recently | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net