According to the latest blockchain data, the number of wallets holding more than 1,000 bitcoins reached 1,510 addresses, the highest point since August 2022. The growth signals renewed interest and confidence from large-scale investors known as “whales.”
Glassnode analysis shows that the accumulation of Bitcoin by large addresses could be indicative of a change in market trends, suggesting that whales may be preparing for another bull run.
It is worth remembering that large shareholders are considered relevant entities due to their ability to influence prices and market sentiment. Consequently, an increase in the number of whales generally indicates growing confidence in a cryptocurrency – in this case Bitcoin.
An interesting statistic from Glassnode shows that Bitcoin traders have made a profit of $885 million on bitcoins purchased between three and six months ago at an average price of $26,000.
This gain, which is over 57%, indicates a positive trend in the market and could influence future investment decisions.
Whales are preparing for the rise of Bitcoin
A recent report from Santiment reinforces the narrative that whales are bracing for a potential Bitcoin rally, saying that increased Bitcoin accumulation by whales would be a “key factor” in helping to trigger a new bull run.
“Several events are helping to trigger a new bull cycle for the cryptocurrency sector, as we saw in October, November and December. But the accumulation of these three assets by whales in particular would be a key bullish signal that many traders would welcome as the halving approaches.” they said.
🐳If the #crypto weekend starts, shark and whale levels for #Bitcoin & top #stablecoins remain slightly decreasing:
💰 10-10K #Bitcoin portfolios: 66.27% of the offering
💰 100K-10M #Tether portfolios: 33.98% of the offering
💰 100K-10M #USDCoin portfolios: 35.49% of the offerThere can be multiple events
(Continued) 👇 pic.twitter.com/qu6SqG4Qis
— Santiment (@santimentfeed) January 20, 2024
However, considerations need to be made about Bitcoin’s near-term future. According to Ki Young Ju, founder of CryptoQuant, Bitcoin is in a distribution phase and has not yet been fully distributed to retail investors.
This situation could lead to a price correction in the short term. Despite this, Ju believes Bitcoin is in a long-term bull cycle, indicating an optimistic outlook for the future of the cryptocurrency.
As investors continue to closely monitor market trends, the increase in the number of large Bitcoin portfolios and recent traders’ gains offer promising prospects for the future value of the world’s largest cryptocurrency.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
