Record Levels of Bitcoin Accumulation
In a remarkable development, wallets holding 10,000 Bitcoin (BTC) or more have reached their highest levels of coin accumulation in the last six years. According to data from Santiment, these substantial wallets now exceed 3.19 million coins, a milestone last achieved in November 2018. This surge indicates a significant trend in the cryptocurrency market, highlighting the strategic movements of major BTC holders.
Impact of Market Volatility
Over the past six weeks, these large BTC wallets have been the extreme beneficiaries of the market’s volatility. As the price of Bitcoin experienced fluctuations, these wallets added a staggering 212,450 BTC to their holdings. This accumulation represents an increase of 1.05% of the total Bitcoin supply, underscoring the confidence of large investors in the digital currency despite its volatile nature.
Role of Exchange Liquidity Providers
Santiment’s analysis suggests that these large BTC addresses are likely comprised heavily of exchange liquidity providers. These entities play a crucial role in maintaining the liquidity of Bitcoin across various trading platforms. By holding significant amounts of BTC, they ensure that there is always enough supply to meet trading demands, thus stabilizing the market to some extent.
What’s Next for Bitcoin’s Price?
Bitcoin’s price recently fell to $53,500 per coin, reaching lows not seen since February. However, it has since pared losses somewhat and was trading at $57,932.57, down 3.4% as of press time. Earlier this year, Bitcoin surged to an all-time high of more than $73,700 in March after the Securities and Exchange Commission approved the first U.S. spot Bitcoin exchange-traded fund (ETF). The future of BTC price remains uncertain, but the recent accumulation by large wallets suggests continued confidence in its long-term value.
