Most of the time, bitcoin whales make more headlines than institutions and retailers, and for all the right reasons. When it comes to directional markets, especially bitcoins, it becomes important to track the movements of large wallets. While concentrated institutional stocks of Bitcoin pose a risk of volatility and price manipulation, whale stocks affect Bitcoin’s supply-demand economy.
With all eyes on Bitcoin in the prevailing market scenario after its 12% gains from the 31st, Bitcoin owned by whale companies (1,000-10,000 BTC) rose over 80,000 to 4.216 million BTC on July 2nd, its highest level since May. The whale entity count also jumped to a three-week high of 1,922 earlier in the month.
Analyst and trader Scott Melker recently pointed out in a video that this is an extremely good sign that whales are piling up. He further added
“It’s very, very interesting to see whales gather again. In a free market like this, you want to be on the side of the whales that you don’t want to operate against trade. “
Melker pointed out that the more fear, doubt and panic there is in the market, the more likely it is for whales to congregate. This accumulation of whales can drive the asset’s price higher and end its bearish cycle for good.
A recent Santiment report also highlighted that Bitcoin’s whale addresses with holdings of 100-10,000 BTC began accumulating in July with an increase in accumulation of 60,000 BTC, the highest daily increase of 2021. These addresses collectively contain 9 , 12 million coins after holding 100,000 BTC less just 6 weeks ago.
This re-accumulation of whale beings was further highlighted by analyst Willy Woo. With hindsight, there’s no denying that these wealthy investors played a leading role in getting the price of Bitcoin to $ 60,000 in just five months.
“Nom nom nom … BTC so delicious today.” pic.twitter.com/TLoHyaJtn2
– Willy Woo (@woonomic) July 3, 2021
The recent surge in the whale balance could further suggest that the bottom may have been hit. Bitcoin was trading at $ 34,766 at press time due to a 24-hour price drop of 1.76%.
It’s also interesting to note that just two weeks ago whales were sold out and some prominent whales even talked about shifting profits from trading Bitcoin to Ethereum. However, given the renewed whale interest in Bitcoin, positive signs for the king coin finally seem to be on the table again.