- Bitcoin whales are steadily extending their lead over other classes of investors.
- New data indicates that the largest whales have the “highest supply of BTC in a year.”
- In the last 20 weeks, these whales took advantage of the dip in prices to accumulate more assets.
Bitcoin (BTC) is going through a lull in prices but beneath the sour sentiments, the biggest of whales are gobbling up loads of assets to increase the size of their holdings. This trend has been construed as proof among some experts that a gigantic rally could be on the way for the asset.
Santiment, a leading cryptocurrency analytic tool has unearthed a trend among mega Bitcoin whales. Mega whales are addresses that hold over 10,000 BTC, and the latest report from Santiment revealed that these whales now control 12% of the total supply of Bitcoin.
“The mega whale addresses of Bitcoin comprised partially of exchange addresses, ow their highest supply of Bitcoin in a year,” wrote Santiment on Twitter. “We often analyze the 100 to 10K BTC addresses for alpha, but accumulation from this high tier can still be a promising sign.”
Santiment’s report noted that the last 20 weeks have been pivotal for the mega whales accumulating the asset as they accumulated 12.8% more during this window. Prices of the largest cryptocurrency fell by over 25% in the last 3 months to reach lows of $28,000. These lows stand in stark contrast to the remarkable highs of $68,000 that BTC reached in the last quarter of 2021.
Santiment believes that this pattern could spell remarkable gains for the asset price in the near future as it signals massive institutional interest in Bitcoin. Market analysts also share the same sentiment with the report.
“In a surprise recovery, the world’s largest cryptocurrency Bitcoin (BTC) managed to give a successful weekly closing above $30,000, This was the first-ever positive close by Bitcoin over the last ten weeks.”
The mega-whales fueling the spree
The addresses fingered in the accumulation spree span wallets of cryptocurrency exchanges like Binance, Bitfinex, OKEX, and others. Michael Saylor’s MicroStrategy is also a heavy player in the game with a streak of buying the dip. The company’s recent Bitcoin purchase was in early April when it bought 4,167 BTC which was valued at $190.5 million. In total, MicroStrategy’s holdings stand at over 120,000 BTC and Saylor has stated that he has no plans to change the company’s Bitcoin strategy.
Retail investors in bitcoin might have been put off by the bearish sentiments in the space. At the World Economic Forum in Davos, Guggenheim’s Scott Minerd sent shivers down the spine of crypto minnows with the claims that BTC could fall all the way to $8,000.
At the moment, Bitcoin is trading at $31,412 which is a 4% bump over the last 24 hours. Transaction volumes are also looking up for the asset after making a huge leap of 88.44% in a day.