On-chain data shows that Bitcoin sharks and whales have continued to accumulate recently, something that could help the rally go parabolic this month.
Bitcoin Sharks & Whales Have Continued To Add To Their Holdings
According to data from the on-chain analytics firm Santiment, BTC sharks and whales have participated in further buying during the past two weeks. The relevant indicator here is the “Supply Distribution,” which tells us about the total amount of Bitcoin that each address group is holding in the market right now.
The addresses are divided into these address groups based on the total number of coins they are carrying in their balances right now. The 1-10 coins group, for instance, includes all investors holding between 1 and 10 BTC currently.
In the context of the current discussion, the cohorts of interest are the “sharks” and “whales.” These are investors who generally hold sizeable sums in their wallets, and their combined coin range may be defined as 10-10,000 coins.
Due to the high amounts that these holders may carry in their wallets, they can have some influence on the market. Naturally, as the whales are the larger of the two groups, they carry significantly more power in the sector.
As the movements of these holders can cause noticeable effects on the market, it can be worth keeping an eye on their behaviors. The Supply Distribution of this coin range can provide hints related to exactly that.
Now, here is a chart that shows how the supply of these investors has changed during the last few months:
The value of the metric seems to have been going up in recent days | Source: Santiment on Twitter
As displayed in the above graph, the Bitcoin Supply Distribution for the 10-10,000 coins group had seen some decline earlier in the year but had bottomed out in the middle of April.
Around the same time as the whales finishing up their selling, the asset’s price had hit a local top and had observed a drop over the next couple of months. While this decline had taken place, though, these sharks and whales had started growing their holdings once again, suggesting that they had been buying the dips.
Later on, when the cryptocurrency had failed to show any signs of a resurgence, the supply of these investors had hit a standstill, implying that these investors had become hesitant to buy more.
Following the bottom in June, however, and the subsequent emergence of news related to new ETF launches, these sharks and whales began to show some strong accumulation.
In the past seven weeks, these investors have loaded up 154,500 BTC, a good chunk of which has come during the past couple of weeks alone. The indicator’s value has now reached 13 million BTC, implying that the Bitcoin sharks and whales now hold 67% of the total circulating supply.
These humongous investors continuing to show strong overall accumulation through this new leg of the rally can be a positive sign for things to come this month.
At the time of writing, Bitcoin is trading around $30,600, up 1% in the last week.
Looks like the asset has been mostly moving sideways in the last few days | Source: BTCUSD on TradingView