- Whales continued to hold on to BTC and refused to sell their holdings for a profit.
- Accumulation by retail investors slowed and activity on the BTC network remained high.
After the price of Bitcoin reached the $70,000 mark [BTC] remained stagnant. Despite the numerous opportunities for Bitcoin whales to take profits, most of them continued to HODL.
How are the whales?
Data from Crypto Quant showed that most whales had not given in to the temptation to sell their holdings.
This behavior could have significant implications for the future of Bitcoin. Their continued confidence in Bitcoin can also improve overall market sentiment, attracting new investors and further increasing demand.
Additionally, whales holding onto BTC can dampen price volatility, making the market more attractive to institutional investors wary of large swings.
Source: Crypto Quant
Expectation of a halving
Bitcoin whales could hold on to their BTC due to expectations of an upcoming halving. Halving, which occurs approximately every four years, is a programmed reduction in the reward for mining new blocks on the Bitcoin blockchain.
This event typically results in a reduction in the rate at which new Bitcoins are created, which ultimately leads to a reduction in the available supply of BTC in circulation.
Historically, previous halving events have been associated with periods of increased scarcity and increasing price pressure for Bitcoin. Therefore, whales may be strategically holding on to their BTC in anticipation of a possible post-halving price increase.
By holding on to their Bitcoin holdings, whales are not only able to profit from potential price increases, but also contribute to the overall reduction in available supply, which can further drive prices higher.
Additionally, the decision to HODL during this period could also reflect their confidence in Bitcoin’s long-term value proposition.
Read Bitcoins [BTC] Price prediction 2024-25
Surprisingly, retail investors were not that heavily invested in BTC. AMBCrypto's analysis of Santiment's data found that the supply of BTC held by addresses with 0.01 to 1 BTC had significantly decreased over the past week.
Source: Santiment
With regard to the overall health of the network, it was found that the number of active addresses in the Bitcoin network remained constant. One of the reasons for this would be the increasing popularity of BTC NFTs.
Source: Santiment
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