The latest data from Santiment reveals a significant increase in the number of Bitcoin wallets holding 10,000 BTC or more. This accumulation has now surpassed 3.19 million coins, marking the highest level in the past six years. The surge in these large BTC wallets has been particularly pronounced over the last six weeks, with an additional 212,450 BTC being added to their holdings. This represents a 1.05% increase in the total Bitcoin supply.
Santiment’s analysis suggests that these large Bitcoin addresses are likely dominated by exchange liquidity providers. These entities play a crucial role in maintaining the liquidity of Bitcoin on various trading platforms. This influx of Bitcoin into these wallets indicates a heightened interest in the cryptocurrency market, particularly amongst institutional players.
The recent fluctuations in the price of Bitcoin have had a direct impact on these large wallets. With Bitcoin’s price dropping to $53,500 per coin before rebounding to $57,932.57, these wallets have seen their holdings fluctuate in value. The market’s volatility has created opportunities for accumulation, with savvy investors taking advantage of price swings to increase their Bitcoin holdings.
Despite Bitcoin reaching an all-time high of over $73,700 earlier this year, the cryptocurrency has since entered a consolidation phase. Prices have remained within the $60,000 to $70,000 range, leading to investor apathy and boredom. This lack of clear direction in the market has resulted in widespread indecision, as investors struggle to identify a strong trend.
According to Glassnode, the True Market Mean for Bitcoin currently stands at $50,000. This figure represents the average cost basis per active investor and serves as a key pricing level for the market. To sustain the macro bull market, Bitcoin prices need to remain above this level. Failure to do so could result in a shift in market sentiment and a potential downward trend.
The surge in large Bitcoin wallets is a reflection of the market’s current volatility. As institutional players accumulate more Bitcoin, the market is poised for further fluctuations. It is crucial for investors to monitor these large wallet movements and the overall market sentiment to make informed decisions about their Bitcoin investments.