The recent choppy consolidation in bitcoin’s price action may have caused concern among many market players, but there is a group of holders who are seizing the opportunity to increase their holdings. Bitcoin whales, specifically those holding between 100 and 1,000 BTC, have been significantly adding to their positions. According to Santiment, these whales have accumulated an additional 94.7K BTC over the past six weeks. This surge in accumulation is occurring at a time of heightened price uncertainty, which has prompted some traders to exit the market.
Following bitcoin’s all-time high in March, the market entered a phase of supply distribution across wallets of various sizes. Long-Term Holders (LTH) were largely divesting leading up to this peak, but in recent months, they have shifted back to holding. Glassnode reports that an additional 374,000 BTC has moved into LTH status in the last three months. This change in behavior suggests that investors are now more inclined to hold onto their BTC rather than sell, despite the prevailing uncertainties in the market.
Bitcoin is currently trading near $61,000 after a 4% surge in the past 24 hours. Analysts believe that the major sell-offs in BTC may be coming to an end. In a recent interview with CNBC, Matthew Sigel, VanEck’s head of digital assets research, highlighted the seasonal patterns that bitcoin typically follows post-halving. He pointed out that with the recent wave of forced selling behind us, BTC is entering a phase that historically poses challenges for its price performance. The period following a halving event, such as the one in April, has historically been difficult for bitcoin, according to Sigel. While the immediate pressures on BTC are easing, the market could still face headwinds as it navigates this challenging phase.
The increased accumulation by bitcoin whales and the shift in behavior among Long-Term Holders suggest a bullish outlook for the market. Despite the recent price uncertainty and challenges faced post-halving, key stakeholders are strengthening their positions, which could indicate a positive sentiment towards the future price performance of bitcoin.
Leave a Reply