A leading analytics firm says Bitcoin (BTC) whales are in heavy accumulation mode despite the crypto king’s weak price action over the past few months.
Santiment says Bitcoin whales have added nearly $26 million worth of BTC per day since April 9, when the crypto king traded nearly $28,000.
According to the analytics company, the whale accumulation suggests that a Bitcoin bounce is on the horizon.
“As the altcoin frenzy has set in, there has been a quiet bullish divergence between Bitcoin’s rising whales and its falling price. With whale holdings rising by ~1,000 BTC a day while prices are falling, there is reason to believe that a strong rebound could take place.”
Meanwhile, fellow analytics firm Glassnode is keeping a close eye on the activities of long-time Bitcoin holders. According to Glassnode, long-term BTC holders remain unfazed amid the market’s current downturn.
“The percentage of long-term Bitcoin holders’ supply sent to exchanges remains extremely quiet at 0.004%.
This highlights the cohort’s deep inactivity amid heightened market distress, and remains indifferent to Binance and Coinbase’s regulatory fees.
Glassnode also monitors the exchange’s deposit volumes to identify which cohort of investors can unload their Bitcoin stacks amid market turbulence. According to the analytics firm, short-term holders are responsible for the vast majority of BTC transfers to crypto exchanges.
“Focusing on the total deposit volumes of Bitcoin exchanges allows us to make a breakdown by cohort type. Here’s how we can identify which investor groups have reacted most significantly to recent regulatory news:
- short-term holders account for 76.4% of the deposit volume (23,000 BTC)
- long-term holders account for only 1.9% of the deposit volume (570 BTC)
- interexchange transfers account for 21.7% of the deposit volume (6,530 BTC).
At the time of writing, Bitcoin is trading at $25,974.
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