As the crypto winter bites deeper, chain measurements suggest that trust among Bitcoin whales have far from declined.
The leading cryptocurrency is currently trading below $ 20,000, down 35% so far this year, and down as much as 71% from the all-time high of around $ 69,000 in November last year.
During massive sales like this, many investors liquidate their positions. However, this does not seem to be the case for those who have more than 1000 BTC.
Recent data from IntoTheBlock indicates that this demographic has actually continued to collect cheap coins despite bearish prices.
Source: IntoTheBlock.
“In the recent multi-year long bear market, Bitcoin has been exploiting whales to accumulate at a rapid pace, as pointed out by the red arrow in the chart,” Juan Pellicer, research analyst at blockchain analysis firm IntoTheBlock, told Decrypt.
However, Pellicer pointed to the fact that although the whales’ balance continues to grow, “so far we do not see them doing so with the same intensity as the last bear cycle.”
Earlier this week, blockchain analytics Glassnode as well so that whales increase the balance aggressively, and obtain 140,000 Bitcoin per month directly from stock exchanges.
Whales currently own as much as 8.69 million BTC, or 45.6% of Bitcoin’s total supply of 21 million, according to Glassnode.
Whale (> 1k $ BTC) usually goes through accumulation / distribution cycles, often in line with #Bitcoin market structure.
These devices also increase their balance aggressively, gaining 140k $ BTC/ month directly from stock exchanges
Still, when asked about the likelihood of such a scenario, Pellicer said there are no “clear chain structures pointing to a very rapid market recovery.”
However, there are some positive aspects, he added, pointing to sustained confidence among private Bitcoin investors – holders with balances between 0.1 and 1 BTC – who “are taking advantage of the market downturn to accumulate at a faster pace than usual.”
“This rapid rate of accumulation in retail [investors] was only seen in the last two years right after the Covid crash, and the price then jumped hard after a few weeks, said Pellicer Decrypt.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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