The recent choppy consolidation in bitcoin’s price action has left many market players on edge. However, amidst this uncertainty, a certain group of holders is seemingly increasing their holdings. Bitcoin whales, specifically those holding between 100 and 1,000 BTC, have significantly boosted their holdings in the past six weeks. According to Santiment, this group of whales has accumulated an additional 94.7K BTC during this period. This surge in accumulation comes at a time when many traders are choosing to exit the crypto market due to the heightened price uncertainty.
After bitcoin reached its all-time high earlier this year, the market entered a phase of supply distribution involving wallets of various sizes. On-chain analytics platform Glassnode revealed that Long-Term Holders (LTH) had largely divested leading up to this peak. However, in the last three months, LTHs have started holding again, with an additional 374,000 BTC moving into LTH status. This shift could indicate that investors are now more inclined to hold onto their BTC despite the prevailing uncertainty.
Bitcoin is currently trading near $61,000 after a 4% surge in the past 24 hours. Many experts believe that the major sell-offs for BTC are possibly coming to an end. In a recent interview with CNBC, Matthew Sigel, head of digital assets research at VanEck, discussed the seasonal patterns that bitcoin typically follows post-halving. He pointed out that with the recent wave of forced selling subsiding, BTC is entering a phase that historically poses challenges for its price performance. Following a halving event, like the one in April this year, bitcoin has historically struggled for one to three months. Sigel’s analysis suggests that while the immediate pressures on BTC may have eased, the market could still encounter obstacles as it navigates this traditionally challenging phase.
The increased accumulation among bitcoin whales and the resurgence of holding among Long-Term Holders could potentially be positive indicators for the market. While short-term volatility and uncertainty persist, the actions of these key stakeholders may signal a bullish outlook for BTC. As the market continues to evolve, it will be crucial to monitor the behavior of these influential players to gauge the future trajectory of bitcoin’s price action.