Despite the negative market sentiments surrounding Bitcoin, there has been a noticeable increase in accumulation by large investors holding more than $600,000 worth of the cryptocurrency. Over the past six months, these investors have been actively increasing their holdings, with a particular focus on wallets holding more than 10 BTC.
The data from on-chain tracking platform, Santiment, reveals that these large holders have managed to accumulate an additional 1.07% of Bitcoin over the past six months. This percentage may seem small, but when translated into numbers, it represents over 5,000 BTC added to their collective holdings. Interestingly, this accumulation trend has been consistent, with buying intensifying during periods of market crashes.
An example of this behavior is evident in early May when the price of Bitcoin experienced a significant drop. Instead of panic selling, these wallets increased their buying activity. As the current BTC price struggles to stay above the $60,000 mark, these large investors have once again begun to increase their holdings. In fact, data from Santiment shows a significant uptick in their Bitcoin holdings over the past month, totaling 16.17 million BTC.
Another indicator of the aggressive accumulation by these large investors is the noticeable decrease in their USDT and USDC holdings. Typically, investors hold stablecoins to hedge against market volatility and wait for favorable buying opportunities. However, the recent drop in stablecoin balances among whales suggests a willingness to invest in Bitcoin at its current low prices.
The decreased holdings of USDT and USDC among these large wallets illustrate a strong belief in a potential price recovery for Bitcoin. The drop in USDC holdings by 1.99% and USDT holdings by 5.37% in the last six months showcases a shift towards acquiring more Bitcoin at discounted prices. This buying behavior could potentially provide vital support for the BTC price at $60,000 and enhance the chances of a significant price increase in the near future.
By analyzing the accumulation patterns of large Bitcoin investors, it becomes evident that despite the bearish market conditions, there is a strong belief in the long-term value and potential of the cryptocurrency. This strategic accumulation of Bitcoin at lower price levels not only demonstrates confidence in its future growth but also sets the stage for a potential price surge in the coming months.
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