There has been a noticeable increase in the accumulation of Bitcoin [BTC] by specific groups in recent months. This surge in holdings by certain addresses has significantly grown compared to six months ago.
A positive indication arises when comparing this increased accumulation with the reserves held on exchanges during the same period.
Growth in Bitcoin Whales’ Holdings by 5%
Recent insights from IntoTheBlock reveal a substantial increase in Bitcoin addresses holding 100-1,000 BTC. These addresses now possess over 4 million BTC, which accounts for more than 20% of the total Bitcoin supply.
This notable surge shows a 5% rise in holdings compared to half a year back when these whale addresses held approximately 3.82 million BTC.
This surge in accumulation highlights the growing confidence in the long-term potential of Bitcoin, especially in volatile market environments.
The significant increase in holdings by these addresses implies that major investors, or whales, are strategically positioning themselves for future gains.
Decline in Bitcoin Exchange Reserves
The recent surge in Bitcoin accumulation by large addresses signals a bullish market sentiment. This sentiment is further supported by the ongoing decline in the Bitcoin exchange reserves.
An analysis of the exchange reserve data on CryptoQuant shows a consistent decrease in Bitcoin reserves on exchanges. The current exchange reserve stands at around 2.68 million BTC, down from about 2.93 million BTC six months ago.
The continuous decrease in the exchange reserve, coupled with the increase in BTC accumulation by addresses holding 100-1,000 BTC, suggests that many holders have opted to retain their BTC rather than engage in selling or trading activities.
By moving their Bitcoin off exchanges, these holders are demonstrating a long-term holding strategy, indicating a rising confidence in potential future price appreciation.
The diminishing exchange reserves alongside the heightened accumulation point towards a constrained supply, potentially leading to upward pressure on prices.
Price Increase for BTC
In the most recent trading session, Bitcoin observed a rise of over 1%, driving its price to approximately $54,881, as per a review of its daily price chart.
At present, Bitcoin has further increased to about $55,300, indicating a minor increase of less than 1%.
Reflecting upon the price trend from the onset of the accumulation phase, BTC was trading above $60,000. This implies that early accumulators are presently holding their assets at a loss.
However, if BTC manages to surpass the $65,000 price threshold, those initial accumulators would transition into substantial profit territory.