In a surprising turn of events, wallets holding 10,000 Bitcoin (BTC) or more have hit their highest levels of coin accumulation in the past six years. Data from Santiment reveals that these substantial wallets now hold over 3.19 million coins, a peak last seen in November 2018. The recent six-week period has seen these large BTC wallets benefit greatly from the market’s volatility, adding a significant 212,450 BTC to their holdings, marking an increase of 1.05% of the total Bitcoin supply.
Santiment’s analysis suggests that these large BTC addresses are likely dominated by exchange liquidity providers. These entities play a crucial role in maintaining Bitcoin liquidity across various trading platforms. This accumulation trend sheds light on the strategic moves of these market players during times of heightened volatility, indicating a level of confidence in the future of Bitcoin.
The recent price fluctuations in Bitcoin, with a drop to $53,500 per coin followed by a recovery to $57,932.57, point towards a market grappling with indecisiveness and lack of clear direction. While Bitcoin reached an all-time high of over $73,700 in March after the approval of the first U.S. spot Bitcoin exchange-traded fund by the SEC, the subsequent consolidation within the $60,000 to $70,000 range has left investors feeling indifferent and bored.
According to Glassnode, the True Market Mean for Bitcoin stands at $50,000, representing the average cost basis per active investor. Maintaining a price above this level is crucial for the continuation of the macro bull market. However, with the current market conditions characterized by a lack of strong trends and widespread uncertainty, the ability of Bitcoin to sustain its price above key levels remains uncertain.
The recent surge in accumulation by wallets holding 10,000 Bitcoin or more reflects a complex interplay between market dynamics, investor sentiment, and institutional participation. While the growing confidence exhibited by large BTC addresses may indicate a positive outlook for Bitcoin’s future, the broader market trends and price fluctuations underscore the challenges and uncertainties that continue to shape the cryptocurrency landscape.