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Sun. Jul 14th, 2024

Here’s how much BTC Big Bitcoin holders bought in five months amid market volatility

By Vaseline May30,2024

Major investors have been actively accumulating Bitcoin during market downturns, potentially viewing them as buying opportunities and then selling during periods of market upswing or anticipation of greater institutional adoption.

Data shows that collective ownership of Bitcoin wallets holding at least 10 BTC has increased significantly over the past five months. In fact, this cohort was found to have added 154,560 BTC over the same period.

  • According to Santiment’s latest analysis, the accumulation of large “sharks” (aka the big investors) and “whales” began amid a market downturn in October 2019, which continued after the COVID scare and into early 2022. This pushed then the price of the asset. above a new all-time high above $60,000.
  • Mid-2022 saw the beginning of mass dumping, as US interest rates wreaked havoc on all markets and BTC fell below $17,000.
  • This period lasted until December 2023, after which aggressive sharks and whales began to gather, likely in anticipation of increased institutional investment. This was just before the spot approval of Bitcoin ETF in January this year.
  • The addition of an additional 154,560 BTC over the past five months leading up to the end of May 2024 indicated significant accumulation by large investors during this period.
  • When these large Bitcoin holders accumulate more, it typically precedes a bullish phase with rising market prices.
  • On the other hand, when these holders start unloading their BTC supply, it often signals the start of a long-term bear market.
  • Furthermore, 50% of the total supply of BTC from another group of long-term holders, who have held BTC for 1-2 years, has remained dormant for over a year, indicating that they are reluctant to sell their tokens for a quick profit.
  • These observations indicate that bitcoin could be poised for another peak in the near term, with some experts predicting this could happen between October 2024 and March 2025.

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