Key Points
- Whale wallets holding at least 10 Bitcoin (BTC) have reached 16.16 million, accounting for 82% of the supply.
- Data analytics firm Santiment suggests a bullish outlook for Bitcoin as the number of whale wallets increases.
The number of wallets containing at least 10 Bitcoin (BTC) has reached 16.16 million as of June 16, indicating a growing confidence among large investors in Bitcoin.
This milestone is particularly significant considering the market changes over the past two years.
Increasing Whale Wallets and Market Value
Santiment, a data analytics firm, revealed that the number of whale wallets holding 10 or more BTC is now at the same levels as June 2021.
During this period, Bitcoin’s market value has risen by 226%.
The amount of Bitcoin held on exchanges has decreased to its lowest point since December 2021, suggesting that whale investors often prefer to hold their assets for long-term storage.
While Ethereum and Tether see an increase in exchange holdings, the overall risk of a sell-off in the crypto market is reduced when Bitcoin’s available supply for sale is limited.
These market conditions further boost investor confidence.
Bitcoin price has seen a recovery amidst this trend, experiencing a consistent decline starting on October 1, 2021, when it hit the $61,000 mark.
A short-lived upward trend from January to March 2022 saw it rise to $45,000, but it subsequently fell to below $17,000 by December 1, 2022, and struggled to recover for the better part of 2023.
This year, Bitcoin price gained significant momentum, reaching a new all-time high. Despite notable volatility, Bitcoin has consistently crossed the $70,000 mark.
Favorable regulatory changes, such as the approval of spot Bitcoin ETFs, have contributed a lot to fueling this trend. ETF has increased both institutional and retail interest and investment in Bitcoin, further boosting confidence among large investors.
The FTX Collapse and Its Impact
Santiment also revealed that the collapse of FTX in November 2022 had significantly impacted the market.
Analysts believe FTX was keeping cryptocurrency prices low in the second half of 2022.
During the FTX trial, a startling revelation emerged from Caroline Ellison, former CEO of FTX-linked Alameda Research, involving allegations of Bitcoin’s price manipulation.
Ellison’s testimony indicated that Sam Bankman-Fried (SBF) actively attempted to sell Bitcoin to keep its price below $20,000.
However, at that time, FTX’s influence was not substantial enough to dominate the market for Bitcoin, which had a market cap of several hundred billion dollars.
This price manipulation attempt could have had significant implications for the cryptocurrency market and the price of Bitcoin.
Santiment noted that since FTX collapsed, there’s been a clear link between the number of whale wallets and Bitcoin’s market value.
