The number of Bitcoins accumulating and wallet addresses is increasing rapidly, reaching new milestones, signaling the return of whales to the market.
According to data from analytics platform Glassnode, the amount of Bitcoin held by whale wallets — those holding between 1,000 and 10,000 BTC — increased to 4.216 million BTC last weekend. This is the highest increase since May.
The number of whale wallets also rose to a three-week high of 1,922 addresses.
The whale’s re-accumulating action suggests a bottom is likely forming.
The above data is considered good news for the market. Because wealthy investors played a key role in pushing the BTC price from $10,000 to nearly $65,000 in the past half year.
However, the same group became a seller in the following months, as Bitcoin reserves fell by 8%, to 4.17 million BTC.
Bitcoin price was mostly around $50,000 to $60,000 during that time period, with a brief spike to a record high of $64,801 in mid-April.
The price action shows the inability of smaller investors to lift prices and signals the possibility of a sharp correction.
In fact, not long after that, Bitcoin fell 35% in May, hit a low near $30,000, and fell further to $29,031 in June.
Maybe you are interested:
- Fed ‘discharges’ 500 Bitcoins into the market
- Bitcoin Mining Difficulty Drops Record
- Forecasting Bitcoin’s peak through technical analysis