- Addresses with between 10 and 10,000 BTCs have added about 11,629 tokens since the August 17 crash.
- The wallets holding more than 0.01 coins also recorded a new all-time high.
Bitcoins [BTC] Last week’s dramatic crash caused a major dent in investors’ portfolios, wiping out billions of dollars in market capitalization in no time. Since then, the king coin has stretched its range, barely reaching the $26,000 mark, data shows CurrencyMarketCap showed.
Read Bitcoin’s [BTC] Price Forecast 2023-24
However, due to a drastic turn of events, Bitcoin surged to $26.8k during the trading hours of August 23. In addition, the token’s trading volume is up 8.27% in the past 24 hours. An increase in price accompanied by an increase in volume is generally indicative of buying pressure and a bullish indicator for short- and medium-term investments.
Although prices retreated to $26.4,000 at the time of writing, the brief rally, which followed almost a week of gloom, brought cheer and hope among market participants.
But what was behind the sudden rise?
Whales lead the way
The voracious appetite of Bitcoin’s major investors was once again manifested as this influential cohort quietly continued to expand their existing holdings.
According to the popular on-chain analytics company SanitationSince the August 17 crash, addresses with between 10 and 10,000 BTCs have added about 11,629 tokens to their existing offerings. At the time of going to press, the market price was $307 million.
Source: Sentiment
Whales or smart money investors are known to use the period of inactivity to strategically step into accumulation mode. The “Buy the Dip” strategy, which involves adding a fundamentally strong asset to an existing long position, is often practiced by seasoned Bitcoin holders.
A look at the number of whale transactions revealed that major investors have been active since the start of the week. After a dip over the weekend, transactions worth more than $1 million rose to nearly 1,330 a day.
Source: Sentiment
Private investors are not far behind
While the affinity of Bitcoin whales was hard to miss, retail investors in the coin also had a compelling story to tell. This group, often known as retail investors, trade in much lower amounts and are perceived to lack investment knowledge and research.
However, these individual investors also seem to have their eyes on Bitcoin’s bullish potential. According to a recent update from Glassnode, wallets holding more than 0.01 coins set a new all-time high.
In fact, this cohort has been steadily growing in numbers over an extended period of time and has survived the rough patches of a bear market that may have passed.
???? #Bitcoin $BTC Number of addresses with 0.01+ coins just reached an ATH of 12,264,393
Previous ATH of 12,264,262 was observed on August 22, 2023
View statistics:https://t.co/oyguxpaA2y pic.twitter.com/dPnMTZzoai
— Glassnode Alerts (@glassnodealerts) August 24, 2023
It is critical to capture the attention of the general public before an asset becomes fully mainstream and accepted. Therefore, the surge in retail adoption seemed like a promising signal for Bitcoin.
HODLing remains the norm
Lately, the coin’s long-term holders (LTH) have been aggressively increasing their stacks. At the time of writing, they controlled nearly 75% of the total circulating supply. The accumulation is rooted in BTC’s increasing popularity as a safe haven asset.
After weathering the US banking crisis unscathed, free from the aggressive radar of US regulators, and impending bullish events such as halving and spot ETF approvals, investors came to believe that the “digital gold” isn’t a misnomer after all. used to be.
Source: Glassnode
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Ethereum shows a similar trend
It wasn’t just Bitcoin that was devoured by the whales. The second largest digital asset Ethereum [ETH] was also picked up since last week’s market crash.
According to data from Look at chainfour whale addresses have accumulated more than 56,000 ETH tokens in the past seven days. About 96% was acquired by just three addresses who each added about 18,000 coins to their wallets.
The wave of accumulation has also boosted the price of ETH over the past 24 hours. The largest altcoin exchanged hands $1,674.73 at at the time of writing, up 1.86%, according to CoinMarketCap data.