Key Points
- Bitcoin whale wallets holding 100 or more coins have reached a 17-month high.
- Smaller traders are selling their holdings, contributing to the growth of Bitcoin whales.
Despite market fluctuations and slow price growth, large holders of Bitcoin, known as whales, have been accumulating significant holdings. This trend has been observed over recent weeks, suggesting that these investors are not deterred by market pressures that have led smaller traders to sell their holdings.
Surge in Bitcoin Whale Activity
The number of Bitcoin wallets with 100 or more coins has reached a 17-month high. This surge in Bitcoin whale wallets was observed by blockchain analytics platform Santiment, which identified over 283 wallets that crossed the 100 Bitcoin mark in the month of August. In total, approximately 16,120 addresses have surpassed this threshold.
The increase in whale activity was also noted by Blockstream CEO Adam Back. He highlighted that this trend occurred as the Bitcoin price dipped from over $62,000 to around $58,000. According to Back, whales have been buying 450 Bitcoin units daily since August 28.
In addition to whales, wallets with at least 10 Bitcoin, known as sharks, have also increased their Bitcoin holdings. According to Santiment’s data, both Bitcoin whales and sharks have collectively accumulated a total of 133,000 Bitcoin coins, valued at more than $7.6 billion in the last 30 days. Despite this significant accumulation, the price of Bitcoin has not been significantly impacted.
Impact on Smaller Traders
The increase in whale activity appears to be linked to smaller traders selling their holdings due to fear and impatience, especially when the market turns bearish. Crypto analyst Axel Adler Jr. confirmed that a price drop below their entry point usually forces smaller traders to sell their holdings. He suggested that a further decline could double the number of traders willing to sell their holdings.
The Bitcoin outlook has significantly impacted several entities. As of August 30, it was reported that Bitcoin held on cryptocurrency exchanges has dropped to its lowest level this year, potentially setting the stage for a significant price movement. Despite the current market conditions, Bitcoin has generally performed well in 2024, and several factors could further strengthen the coin’s position.
