Bitcoin (BTC) whales continue to accumulate Bitcoin as the virtual currency remains below the key level of $40,000. According to data shared by Barron’s, we are currently in an accumulation phase where whale holdings have risen to the highest point since September last year. This could be one of the reasons why, despite the recent bearish trends in traditional financial markets, Bitcoin remains relatively stable.
Whales Accumulate more BTC as Bitcoin Falls Below $40,000
Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, mentioned that retail investors remain extremely bearish but whales continue to add BTC to their holdings. This is despite the fact that the market continues to be below $40,000, a very important price level.
About the current accumulation phase by whales, Sotiriou mentioned:
“Whale holdings have risen to its highest since September last year. We can see that when whale holdings increased dramatically last September, it led to a significant increase in price in November. As whales have a substantial impact on the market, this metric is an important one to take note of.”
It is worth pointing out that Bitcoin reached an all-time high in November 2021 when its price got closer to $70,000 per coin. Since that moment, Bitcoin has been moving lower. Nowadays, the price of the largest cryptocurrency has stabilized between $38,000 and $40,000.
According to data shared by IntoTheBlock, the 30-day change in balance holdings for small investors has also been growing. For example, the wallet addresses holding between 0.001 BTC and 0.01 BTC (between $38 and $380) have grown by 2.18%. Those wallets with holdings between 0.01 BTC and 0.1 BTC (between $380 and $3,800) have grown by 2.06%.
Furthermore, wallets holding between 0.1 BTC and 1 BTC (between $3,800 and $38,000) experienced a growth of 1.31%. Meanwhile, wallets between 1 BTC and 10 BTC (between $38,000 and $380,000) have grown by 0.93%.
Therefore, we can also see that there is interest in holding Bitcoin by small retail investors, going against what Mr. Sotiriou said that there was extremely bearish sentiment in smaller investors. In the coming months, we could see this accumulation phase get stronger if the market starts moving lower.
Usually, when the market starts falling and reaching new lows, it becomes a good opportunity for investors to enter the market and get access to virtual currencies at a lower price. This could be a good thing for those investors that are searching for a long-term position in Bitcoin or other digital assets.
That being said, Bitcoin has been following traditional financial markets. That means that it would be important for Bitcoin investors to closely follow the market trend and make decisions according to how it behaves. If it continues moving downwards, then Bitcoin should also follow, the contrary is true if traditional markets start moving higher.