On-chain statistics indicate that Bitcoin whales have persisted in acquiring more even at the recent peaks, a signal that could be promising for the rally.
Bitcoin Major Holders Netflow Has Recently Experienced Positive Surges
As per information from the market analytics platform IntoTheBlock, the quantity of BTC whales has seen a rise recently. The on-chain metric of interest in this scenario is the “Large Holders Netflow,” which monitors the overall volume of Bitcoin moving into or out of the wallets linked with Major Holders.
IntoTheBlock categorizes “Large Holders” as those investors holding at least 0.1% of the cryptocurrency’s total supply. Presently, there are approximately 19.8 million tokens of this asset in circulation, meaning holders qualifying for this group would possess at least 19,800 BTC.
At the prevailing exchange rate, this quantity of the asset amounts to roughly $1.8 billion. Consequently, the investors within this category would be relatively significant in size.
Typically, the impact of any investor in the marketplace rises in correlation with the volume of coins they possess, so the Major Holders with their substantial balances represent the most significant players on the network. Therefore, monitoring the actions of this group can be quite insightful.
When the Major Holders Netflow records a positive value, these substantial investors experience an influx of a net amount of coins into their wallets. This purchasing activity can inherently be bullish for the asset.
Conversely, a negative indicator implies that Major Holders are reducing their possessions, which could potentially lead to bearish movements for the cryptocurrency.
Now, below is a chart illustrating the trend in Bitcoin Major Holders Netflow throughout the past year:
The metric seems to have experienced several green spikes in recent days | Source: IntoTheBlock on X
As depicted in the graph above, the Bitcoin Major Holders Netflow experienced significant surges earlier in the year as the whales were actively accumulating the asset.
Interestingly, as BTC’s recent surge to new all-time highs (ATHs) has taken place, the indicator has once more recorded positive surges. The magnitude of these latest net purchases has been notably less than the previous ones, but the absence of any selling activity from these investors is undoubtedly a positive sign for BTC.
The net accumulation naturally highlights the whales’ confidence in the cryptocurrency at present, considering that these purchases have occurred while BTC has been trading at unprecedented prices.
It now remains to be seen whether this accumulation by Bitcoin Major Holders will lead to a continuation of the upward trend or not.
BTC Price
At the time of this writing, Bitcoin is trading at approximately $92,600, marking an increase of over 7% over the last week.
It seems the price of the coin has been fluctuating sideways over the past few days | Source: BTCUSDT on TradingView
Featured imagery from Dall-E, IntoTheBlock.com, chart from TradingView.com