Bitrabo Editorial
Recent data from on-chain analysis reveals that Bitcoin investors holding between 100 and 1,000 BTC have been actively purchasing more of the cryptocurrency in the last couple of months.
Significant Increase in Bitcoin Holdings by Wealthy Investors
According to analyst Willy Woo, a group of affluent Bitcoin investors, known as “sharks,” have been significantly increasing their holdings recently. These investors currently possess between 100 and 1,000 BTC in their wallets.
At the current exchange rate, the value of this range of holdings is approximately $6.2 million to $62 million. While these investors, referred to as sharks, can influence the market, they hold less sway compared to whales, who are the largest holders of over 1,000 BTC.
Woo shared a Glassnode chart displaying the trend in the total Bitcoin supply held by investors falling within this range over the past few years:
The data considers the supply held by entities within the 100 to 1,000 BTC range rather than individual addresses. An entity represents a group of addresses identified by Glassnode as belonging to a single investor through analysis.
Entities offer a more precise overview of the market as some investors prefer to distribute their holdings across multiple wallets. Transactions between an investor’s addresses would be irrelevant on a broader scale but would affect buying or selling activities when only addresses are taken into account.
The chart illustrates a rapid growth in the supply held by Bitcoin shark entities over the last few months, indicating that this group has been aggressively accumulating Bitcoin.
This recent accumulation surpasses any previous buying phases by this cohort in recent years. Woo’s long-term analysis of the indicator reveals that this current buying spree is exceptional even when compared to historical accumulation trends.
While this buying streak may not be the largest in Bitcoin’s history in terms of BTC, it stands out in USD value due to the high trading prices of $60,000 to $70,000. However, some find this accumulation unusual due to its intensity.
On-chain analyst Checkmate suggests that this spike could be attributed to coins flowing into smaller exchange-traded funds (ETFs). Woo, on the other hand, argues that ETFs alone cannot explain the surge, implying demand from non-centralized entities.
Checkmate remains wary, questioning the feasibility of numerous large investors purchasing billions of dollars worth of Bitcoin in a short period. Instead, the analyst believes the data may reflect wallet management by an exchange or another custodial entity.
Bitcoin Price
Bitcoin’s attempt at recovery has stalled, with the asset returning to $62,200.