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Data shows that while number of Bitcoin whales is going down, the remaining ones keep on accumulating more during dips.
The Remaining Bitcoin Whales Show Diamond Hands As They Buy More Dips
As per the latest Arcane Research report, BTC whales continue to accumulate despite the total number of them going down over the past few months.
Typically, a “whale” is any Bitcoin wallet holding more than 1000 BTC (around $42.5 million at the current exchange rate).
Here is a chart showing the trend in the number of whale addresses vs the total amount of BTC held by these addresses:
The number of addresses with more than 1k BTC seems to be going down | Source: Arcane Research
The above chart shows some interesting facts about these two Bitcoin indicators. 8 February marked the all-time-high (ATH) for the number of whale addresses, but since then, the metric’s value has gone down 15%.
As expected, the total value held on these addresses also slipped downwards as the number of whales went down. However, the trend quickly reversed in March, and the value of these wallets has only moved up since then.
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In spite of the number of addresses showing a consistent downtrend, the value held by the remaining whales is only 1% less than the ATH.
What Could This Trend Suggest?
If you examine the chart from before, you will realize that the whale indicators hit their ATHs during the start of the 2021 Bitcoin bull run.
A sharp uptrend in January took the metrics to these values, and a similarly sharp downtrend brought the values back to December 2020 values by March.
This means that most of the new whales were in it for the short term, and as soon as they got enough profits, they dumped the coin.
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The remaining whales, however, consisted of mostly strong hands that kept on accumulating as shown by today’s total whale value, which puts the average amount of Bitcoin in each wallet to be 3722, an increase from the 3236 value back in Feb.
At the time of writing, Bitcoin’s price floats around $42.5k, down 9% in the last 7 days. Over the past month, the cryptocurrency has shed 12% in value.
The below chart shows the trend in the price of the coin over the last five days:
BTC's price continues to slip down | Source: BTCUSD on TradingView
Bitcoin fell down sharply to $40k yesterday after peaking near $49k just a couple of days back. The coin has since made some recovery, but there hasn’t been any solid uptrend yet.
Featured image from iStockPhoto, charts from TradingView, Arcane Research