- Bitcoin whale wallets are accumulating BTC at a rate similar to July 2020 – January 2021 when Bitcoin rallied by 550%
- New whale wallets with an average coin age under 155 days have reached a new high of 1.97 million BTC, representing 9.3% of the total supply
- Long-term Bitcoin holders may be stabilizing or taking profits, while short-term holders are shifting towards accumulation
Bitcoin whale activity suggests that the retail and institutional crypto market is preparing for the bull market to shift into a higher gear.
Whales Are Accumulating Bitcoin Despite Price Volatility
According to Woominkyu, a verified author on CryptoQuant, the Bitcoin whale ratio on spot exchanges is currently similar to the ratio observed around July 2020 after the COVID-induced crash in March. The author indicated that whales continue to accumulate BTC despite short-term price volatility as they are positioning themselves for a long-term price increase.
New Whale Wallets Represent 93% of Total BTC Supply
CryptoQuant CEO Ki-Young Ju indicated that new whale wallets with an average coin age under 155 days have also reached a new high of 197 million BTC. One key difference between these whale wallets and the ones on spot exchanges is that these are non-miner wallets and potentially custodial. Ju mentioned that their BTC balance surged 813% YTD, taking up 93% of the total supply valued at $132B today.
Bitcoin Long-Term Holders May Be Stabilizing
Although whale wallets represent a bullish outlook for the future, long-term holders and miners may continue to add a bit of resistance to BTC’s price. IT Tech, an on-chain analyst on CryptoQuant, shared that long-term holders are potentially stabilizing or taking profits. Meanwhile, miners’ profit sustainability has increased recently, which often correlates with Bitcoin price peaks. However, the analyst added that short-term holders are shifting towards accumulation so the market could absorb any form of selling pressure.
Conclusion
While whale accumulation points to a bullish future for Bitcoin, some resistance from long-term holders and miners could impact BTC’s next move. However, renewed accumulation from short-term holders may offset any selling pressure. Overall, on-chain data suggests the crypto market is preparing for the next leg up.
