The Increase in Bitcoin Whale Holdings Amidst Choppy Price Action

The Increase in Bitcoin Whale Holdings Amidst Choppy Price Action

The recent choppy consolidation in the price of Bitcoin has left many market participants concerned. Despite this uncertainty, a specific group of Bitcoin holders, known as whales, have been increasing their holdings. According to Santiment’s latest report, Bitcoin whales holding between 100 and 1,000 BTC have accumulated an additional 94.7K BTC over the past six weeks. This surge in accumulation comes at a time when many traders are exiting the crypto market due to price volatility.

After Bitcoin reached its all-time high in March, there was a phase of supply distribution among wallets of different sizes. During this period, Long-Term Holders (LTH) were found to have reduced their holdings. However, in the last three months, there has been a reversal in this trend, with an additional 374,000 BTC moving into LTH status. This shift suggests that investors are now more inclined to hold onto their BTC, even in the face of uncertainty, rather than selling.

Currently, Bitcoin is trading near $61,000 after a 4% surge in the past 24 hours. Experts believe that 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, pointed out the seasonal patterns that Bitcoin tends to follow post-halving. He mentioned that with the recent wave of forced selling behind us, Bitcoin could face challenges in its price performance in the coming months.

Historically, Bitcoin has struggled in the one to three months following a halving event, which occurred in April in this cycle. Sigel’s analysis indicates that while the immediate pressures on Bitcoin have eased, the market may still encounter obstacles as it navigates this traditionally challenging phase. Despite the increased holdings by whales and long-term holders, the overall crypto market remains susceptible to price volatility and uncertainty.

Crypto

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