Recent on-chain data reveals that the population of Bitcoin whales has increased, even amidst the bearish price trends.
Significant Growth in Bitcoin Whales Over the Last Five Weeks
As per the analytics firm Santiment, there has been a rise in whale-sized Bitcoin wallets, marking the highest number since December of the previous year.
The key indicator here is the “Supply Distribution,” which informs us about the number of wallets within specific coin ranges. For instance, the metric for the 1 to 10 coins range indicates the number of addresses or investors holding between 1 and 10 tokens.
In this context, we focus on the range of 1,000 to 10,000 coins. Investors holding this much (equivalent to $84.2 million to $842 million) are commonly referred to as whales.
Because of the substantial size of their holdings, these investors can exert some influence in the market. While individual whales might not significantly affect cryptocurrency, their collective presence certainly can. The Supply Distribution metric assists in monitoring this group behavior.
Below is the chart provided by the analytics firm, illustrating the trend in the Bitcoin Supply Distribution for the 1,000 to 10,000 coins category over the past few months:
The chart indicates that Bitcoin Supply Distribution for whales dropped significantly during the December price peak, suggesting that many of these large investors exited the market.
A similar trend was noted during the January peak, albeit to a lesser extent, indicating that whale selling once again curtailed the BTC rally.
Throughout most of February, the metric remained low, but it began to rise in the last week of the month. This upward trend continued into March, and currently, there are 1,993 whale-sized addresses on the network, the highest since the December peak.
This increase in whale entities has occurred while Bitcoin has been struggling at its lows, hinting that large investors may be viewing the current price levels as advantageous entry points into the cryptocurrency.
“Numerous factors are influencing the volatile crypto markets at present, but it can be seen as a slight indication of confidence that one of the most pivotal stakeholder groups in cryptocurrency has expanded by +2.6% in just the last five weeks,” observes Santiment.
It remains to be seen whether this purchasing activity from Bitcoin whales will prove beneficial.
Current BTC Price
Bitcoin has been trading sideways recently, with its price hovering around the $84,000 mark.
