cryptoknowmics.com
The bullish momentum of Bitcoin accumulation increased was confirmed by an on-chain indicator showing that the accumulation activities of the wallets with balances between 10,000 BTC and 100,000 BTC have increased. This only indicates that Bitcoin whales have accelerated their buying spree.
Bitcoin Whales on a Buying Spree
On-chain analytics provider Glassnode highlighted in its Nov. 8 “The Week Onchain” report that “Investors are just not spending their coins.” Long-term holders or investors who have not moved their BTC in 12-months are among those most actively pumping their bags with said addresses moving just 6,500 BTC daily.
At the same time, the share of supply held on centralized exchanges has dropped to a record low of 12.9% as BTC is increasingly placed into secure storage. Over the past five days, BTC Whales have accumulated 43,000 BTC, worth about $2.82 billion and about 92,000 BTC, over $6 billion, in the last 25 days.
On-chain analyst Willy Woo noted that Bitcoin saw an increase in exchanges to cold storage transactions in recent weeks as dollar-pegged stablecoin USDC also surged.
"Price was previously overheated, calling for a time of consolidation, since then we've seen significant buying from investors while [the] price has been sideways. It’s been a healthy consolidation. Meanwhile, significant whale activity has been spotted which suggests BTC’s next move in price may come soon."
Long-Term Holders in Accumulation Phase
Glassnode further noted that more than 5,000 BTC worth $338.6 million at the time of writing was withdrawn from centralized trading venues during last week.
“The market is likely still in the quiet accumulation phase, punctuated by low activity, large exchange outflows, and very modest strategic spending by experienced holders.”
The report even pointed out that increased Bitcoin accumulation from long-term holders served as a precursor to April’s previous BTC all-time high as well. For instance, the share of Bitcoin’s supply represented by long-term holders reached a high of 80.6% in August 2020 before leading to April 2021’s highs of roughly $66,000. Since the $66,000 price point, long-term holders spent 0.73% of the Bitcoin supply while reducing the amount of supply they held to about 68%.