Bitcoin Whales back to accumulation, buy 20,000 BTC

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On-chain data shows that Bitcoin whales have recently returned to accumulation mode, a sign that could be bullish for the price of cryptocurrencies.

Bitcoin Whales bought 20,000 BTC in the last two days

According to data from on-chain analysis firm Santiment, the month-long discharge of whales appears to be over. The relevant indicator here is the BTC Supply Distribution, which tells us about the amount and percentage of the total Bitcoin supply in circulation currently held by each group of wallets in the industry.

Wallets are divided into these groups of wallets based on the total number of coins they currently carry in their balances. For example, the 1-10 coins cohort includes all addresses that hold between 1 and 10 BTC.

If the Supply Distribution metric is applied to this specific group, it will summarize the amounts held by all wallets on the blockchain that meet this condition and calculate what part of the total supply this amount represents.

Now, in the context of the current discussion, the segment of interest is the 100-1000 coin group. The graph below shows the trend of Bitcoin supply distribution for this particular cohort.

The value of the metric seems to have increased in recent days | Source: CryptoQuant

As the range of this group of wallets includes very large amounts ($2.92 million at the lower bound, $292 million at the upper bound), the likely address holders falling into this cohort would be whales.

Whales are an important part of the Bitcoin ecosystem due to the large amount of supply they possess. Due to the fact that they hold a large share of the supply, they are able to have noticeable effects on the price through their movements.

From the chart above, it is visible that the distribution of BTC supply from these huge investors started to decline in mid-March, implying that the whales were selling off their coins.

While this selloff was taking place, the price of the cryptocurrency stopped its surge and plateaued around the $28,000 level. Recently, however, the dumping of these holders has stopped as the price of the assets has seen a further rise.

Over the past two days, the supply distribution of Bitcoin whales has even reversed course, as these investors have now added approximately 20,000 BTC ($585.3 million) to their combined wallets.

With this latest accumulation from the whales, their total holdings have now reached a value of approximately 3.88 million BTC ($113.4 billion), or approximately 20.07% of the entire BTC supply in traffic.

As is clear from the chart, this value is still significantly lower than what the Bitcoin whales were carrying before the selloff began in March. Nevertheless, there is still a positive recovery in their reserves.

The accumulation of these huge holders may be a sign that they have a bullish conviction on cryptocurrency right now, which is understandably something that can be constructive for the market in the long run.

BTC price

As of this writing, Bitcoin is trading around $29,300, down 2% in the past week.

Looks like the value of the asset has plunged in the last day | Source: BTCUSD on TradingView

Featured Image by Todd Cravens from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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