Bitcoin sharks and whales have continued to buy up 93,000 BTC since local highs in April, according to Santiment on-chain data.
Bitcoin Sharks And Whales Accumulate Since April Tops
According to data from an on-chain analytics company Santimento, these holders have become a little more cautious in recent weeks. A relevant metric here is the “supply distribution”, which measures the total amount of Bitcoin currently held by each wallet group in the market.
Addresses are divided into wallet groups based on the total number of coins currently in balance. For example, the 1-10 coin cohort includes all investors holding at least 1 BTC and at most 10 BTC.
In the context of the current discussion, two groups of investors come to the fore: ‘sharks’ and ‘whales’. The former of these is a cohort containing investors holding moderate amounts of coins, the latter containing investors holding large amounts of coins.
The combined supply of wallets from these groups could have a significant impact on the market. Naturally, whales are much more powerful beings because they hold much larger quantities.
Here, Santiment defined the total wallet range for these sharks and whales as 10-10,000 BTC. Below is a graph showing the trends in supply distribution for this address group over the past few months.
The value of the metric seems to have been climbing in the past month or so | Source: Santiment on Twitter
From the graph above, we can see that total Bitcoin shark and whale holdings have begun to observe some decline when the spike occurred in March.
While these investors diversified, prices moved roughly sideways, suggesting selling from these cohorts may have slowed the gains. And in mid-April, as the cryptocurrency hit a local high near $31,000, supply of sharks and whales hit a local low.
These investors then began to raise money as asset prices registered a downward trend. This pattern means that these holders have wisely taken advantage of the opportunity presented by the drop and started buying again.
Bitcoin sharks and whales have added a total of about 93,000 BTC ($2.6 billion at the current exchange rate) to wallets since the buying began in April, following local tops.
But supply has stagnated as the asset has faced struggles in recent weeks. This new sideways trend in the metric could be a sign that these big investors are wary of buying more as they don’t know where the coin will go next.
Bitcoin has been trying to get stronger in unison over the last few days, but so far these investors haven’t reacted visibly to it. Naturally, if it starts building up again, it will indicate that it is supporting the surge.
BTC price
At the time of writing, Bitcoin is trading close to $27,900, up 2% over the past week.
BTC has made a recovery push | Source: BTCUSD on TradingView
Featured Image of Jake Gaviola on Unsplash.com, Charts on TradingView.com, Santiment.net