Bitcoin Whales Accumulate BTC as Retail Traders Exit the Market: What This Means for Price

Bitcoin whales are growing in number as crypto prices have let retail traders down. A net gain of +283 wallets holding at least 100 BTC has emerged

As crypto prices continue to fluctuate, new data reveals that Bitcoin whales are increasing in number. According to Santiment, a net gain of 283 wallets, each holding at least 100 BTC, has emerged in just one month. This brings the total to a record 16,120 wallets, marking the highest level in 17 months.

This development suggests that significant investors are largely unfazed by the recent price movements. Meanwhile, a Glassnode report highlights the changing dynamics of Bitcoin investors post-March ATH.

Following the all-time high, the market has experienced choppy price movements, leading to a large portion of the Bitcoin supply being concentrated in the 3-6 month age bracket.

Historically, this age group tends to reach its peak following main market tops, typically during the subsequent corrections. Such periods present a dilemma for investors, whether to HODL through the downturn or sell at a loss.

Currently, coins aged 3-6 months account for over 12.5% of the circulating supply, a trend that aligns with market behavior during the mid-2021 sell-off and the 2018 bear market.

A deeper analysis of this supply reveals that while a constant holding pattern is evident, there has been a significant increase in loss events since July.

The decrease in the total supply of coins held within this age band signals that some investors are capitulating, a scenario that coincides with past major market turning points.

On the other hand, coins within this bracket that are retained are nearing LTH status, indicating a lower probability of being spent soon. This transition is further illustrated by the URPD metric, which tracks the net Long-term Holders and Short-term Holders.

Recent data indicates that over 480,000 BTC purchased at current prices are now classified as LTH, highlighting the unrealized losses, which aligns with the increasing trend in long-term holding.

Moreover, perpetual swap markets show a reduction in speculation trading. Liquidation volumes are sharply declining from the peak in March, suggesting lower demand for speculation.

However, the inverse relationship between price volatility and net liquidation volumes suggests the opposite. There are clear cycles in the trader-actor's speculative activities, as well as clear trends toward an increase or decrease in speculative interest.

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