Bitrabo Editorial
According to on-chain data presented by Santiment, Bitcoin whales and sharks have accumulated an impressive sum of 93,000 BTC since April’s local high. However, Santiment data indicates that the investor groups have become a bit more careful lately. In particular, Santiment assesses this trend via the Supply Distribution index, which measures the total amount of BTC held by each wallet group in the market.
The addresses are divided into wallet groups based on the total number of coins held by each wallet. Under this categorization, a group categorized as the “sharks” comprises investors holding a moderate number of coins, while the “whales” include large holders.
Given the holdings of these two groups in the market, they can substantially influence the market. Notably, the whales, being the larger players, have more significant control. Santiment includes the combined wallet ranges of the whales and sharks as 10-10,000 BTC. The following graph displays the trend in the Supply Distribution of this address group in the past few months:
The value of the metric seems to have been climbing in the past month or so | Source: Santiment on Twitter
The above graph shows that the combined holdings of the Bitcoin whales and sharks observed a slight decrease during the surge in March. The sideways trend in price signals that this selling from the two cohorts probably slowed down the rally. Conversely, as the cryptocurrency peaked at a local high around $31,000 in mid-April, the supply of the sharks and whales hit a local low. Consequently, investors started accumulating as the asset’s price registered a downtrend. This pattern implies that the investors wisely took the chance to purchase during the lows.
These investors have accumulated roughly 93,000 BTC ($2.6 billion at current exchange rates) from the top in April. However, their stock has remained stagnant in recent times as the assets market price faces obstacles. This sideways trend indicates that these significant investors are hesitant to purchase more as they have the uncertainty of where the coin may end up. Bitcoin has tried to stage a recovery in the past few days, but investors have yet to show significant reactions. If they were to start accumulating again, it would be an indication that they are supportive of the rise.
Bitcoin Price
At the time of writing, Bitcoin is trading around $27,900, up 2% in the last week.
BTC has made a recovery push | Source: BTCUSD on TradingView
Featured image from Jake Gaviola on Unsplash.com, charts from TradingView.com, Santiment.net