Bitcoin Holders Making Significant Moves: Number of Whale Wallets Reaches Highest Level in 15 Months
Bitcoin, the largest cryptocurrency, seems to be stuck in a rut for many investors due to current market conditions. Last week, the crypto mostly traded between $41,000 and $45,500, after recovering from a brief drop below $40,000 on January 23. However, while the price action may be uninspiring, on-chain data reveals that large holders have been increasing their holdings, resulting in the highest number of wallets in 15 months. Additionally, smaller whales have been adding to their holdings to join the next tier of holders.
According to on-chain analytics platform Santiment, the number of Bitcoin addresses holding between 1,000 and 10,000 BTC has increased by 47 wallets (a 2.5% growth) in just six days. As a result, the total number of addresses in this tier reached 1,958 on February 1st, the highest point since November 2022.
On the other hand, the number of wallet addresses holding between 100 and 1,000 BTC has decreased by 154 addresses (a 1.1% decrease) during the same time period. Consequently, the number of addresses in this tier fell to 13,735 on February 1st, the lowest point since November 2022.
The accumulation by a large number of whale holders signifies continued confidence in Bitcoin despite the current consolidation. However, whale accumulation is just one of many market factors influencing the cryptocurrency’s price. The macro outlook suggests positive momentum on the fundamental side, with recent capital flows of $1.7 billion into Bitcoin spot ETFs in the past 14 days.
Various analysts have differing views on Bitcoin’s future price trajectory. Michaël van de Poppe predicts continued consolidation in the coming months, with a resistance at $48,000 to $50,000, followed by a correction towards $36,000 to $38,000. On the other hand, Justin Bennett suggests a bearish outlook, with a potential BTC decline to around $30,000, supported by Tether’s dominance chart and analyst PlanB’s absolute Bitcoin price floor of $31,000.
As of now, Bitcoin is trading at $42,909.
Disclaimer: The article is for educational purposes only and does not constitute financial advice. Remember to conduct your own research before making any investment decisions.