On-chain data shows that the largest number of investors in the Bitcoin market are finally making a purchase, which could be bullish for the asset’s value.
Bitcoin Mega Whales have shown net inflows over the past day
In recent weeks, Bitcoin price has struggled to build significant bullish momentum as it continued to consolidate within a certain range.
Previously, while this was happening, the largest containers in the room had been sit quietly, without buying or selling anything of note. This is evident from data from the market information platform InTheBlokHowever, this seems to have changed in the past day.
Relevant holders here are the “large holders,” which, as defined by the analytics firm, are investors who hold at least 0.1% of the entire circulating Bitcoin supply in their wallets.
There are just under 19.7 million tokens circulating for the cryptocurrency, of which 0.1% would be 19,700 BTC. This amount is worth more than $1.26 billion at BTC’s current exchange rate.
Clearly, these large holders are indeed quite large, and in fact they are much larger than the usual whale investors, who typically hold between 1,000 and 10,000 BTC. As such, it might be appropriate to call these gigantic entities “mega whales.”
Since an investor’s influence on the market increases as their holdings increase, these mega-whales would be the most powerful entities on the Bitcoin network. Therefore, their moves could have some implications for the broader market.
IntoTheBlock has used the netflow on-chain indicator to track the movements of the large holders here, which measures the net amount of BTC entering or leaving these investors’ wallets.
The chart below shows the trend in this metric over the past few months:
The value of the metric seems to have been positive most recently | Source: IntoTheBlock on X
As shown in the chart above, Bitcoin Large Holders’ net flow recorded a notable positive spike yesterday, meaning these investors received a net amount of coins into their wallets. The mega whales bought 19,760 BTC during this peak, worth more than $1.27 billion.
“Historically, accumulations by these addresses have often preceded increases in the price of Bitcoin,” the analytics firm notes. The chart shows that this cohort made some extraordinary purchases on the way to the new record for this asset.
As such, it is possible that these latest purchases will also help the asset gain bullish momentum in the near future. Something to note, however, is that the size of the latest spike, while large in its own right, isn’t as prominent as some of the big buys we’ve seen before.
BTC price
At the time of writing, Bitcoin is trading around $64,500, down more than 5% in the past week.
Looks like the price of the asset has been trading sideways recently | Source: BTCUSD on TradingView
Featured image by Rod Long on Unsplash.com, IntoTheBlock.com, chart from TradingView.com
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