- The Bitcoin exchange reserve recorded a decline over the past three weeks.
- The steady accumulation among whales indicated expectations of further price increases.
Bitcoin [BTC] has witnessed a huge price increase in the last three weeks. The stock traded at $38.5k on January 23 and rose to a local high of $52.8k on February 15, representing a 37% gain in 23 days.
Much of this bullish sentiment can be attributed to the BTC ETFs. But as recently Santiment post showed that the accumulation of whales also played a role in the price increase.
Recent findings fuel further bullish expectations
Santiment posted a chart on This amounted to a whopping $12.95 billion. The size of their wallets identified them as whales.
Meanwhile, wallets holding 100 to 1,000 BTC will have dumped 151.2k coins in 2024, or $7.89 billion worth of Bitcoin. Additionally, the past five days also witnessed the highest level of whale transactions (transactions over $100,000) since June 2022.
All told, this was a sign that the Bitcoin sharks were profiting and selling, possibly hoping for a deep retracement in the coming months. Meanwhile, the whales continued to ply their trade and accumulate BTC, confident that their belief would be confirmed over the longer time horizon.
Source: CryptoQuant
AMBCrypto analyzed CryptoQuant’s Bitcoin exchange reserve metric and found a downward trend over the past three weeks. The foreign exchange reserve has increased from 2.106 million BTC to 2.068 million BTC from January 25 to the time of writing.
Combined with Santiment’s data, this was evidence of accumulation. Therefore, it supported expectations that demand for BTC was higher than supply, causing prices to rise even higher.
Source: CryptoQuant
However, a look at the stablecoin supply ratio showed that this metric has risen sharply over the past five months. This meant that the supply of stablecoins saw its purchasing power decrease in recent months.
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While this highlights some bearishness for Bitcoin, overall the metrics suggested that accumulation was underway.
There could be some volatility in the short term as Bitcoin traded in a key resistance zone with a higher timeframe at $52,000.