There has been a noticeable surge in the accumulation of Bitcoin by specific large addresses in recent months, with a significant increase in holdings compared to six months ago.
Comparing this rise in accumulation with the exchange reserves over the same period reveals a more positive picture.
Expansion of Bitcoin Whales by 5%
Recent findings from IntoTheBlock indicate a substantial increase in Bitcoin addresses holding 100-1,000 BTC and accumulating a total of over 4 million BTC, which amounts to more than 20% of the total Bitcoin supply.
This surge in holdings marks a 5% elevation from the figure recorded six months ago when these addresses possessed about 3.82 million BTC.
This upward trend in accumulation reflects a growing belief in Bitcoin’s future potential, especially amidst the current market volatility.
The significant rise in holdings by these addresses implies that major investors, or ‘whales,’ are preparing for future growth opportunities.
Continuous Decline in Bitcoin Exchange Reserves
While the recent uptick in Bitcoin accumulation by large addresses signals bullish sentiment, the ongoing decrease in the Bitcoin exchange reserve further solidifies this positive outlook.
Analysis of exchange reserve data on CryptoQuant reveals a consistent decline in Bitcoin reserves on exchanges, with the current standing at approximately 2.68 million BTC, down from 2.93 million BTC recorded six months earlier.
This continuous drop in exchange reserves, coupled with the increased accumulation by addresses holding 100-1,000 BTC, indicates a preference among holders to retain their Bitcoin rather than engage in selling or trading activities.
By transferring their Bitcoin off exchanges, these holders are showcasing a long-term holding strategy, indicating a growing confidence in potential future price appreciation.
The diminishing exchange reserves alongside the rising accumulation point towards a limited supply, potentially resulting in upward pressure on prices.
Rise in BTC’s Market Price
In the latest trading session, Bitcoin experienced a slight uptick of over 1%, pushing its price to about $54,881, based on the analysis of its daily price movement.
Current data shows Bitcoin’s price has further climbed to around $55,300, registering a modest increase of less than 1%.
Reflecting on the price trend since the accumulation phase initiation, Bitcoin was trading above $60,000, indicating that early accumulators are currently holding their assets at a loss.
Nevertheless, breaking past the $65,000 range would propel these early accumulators into a profitable zone.