On-chain data shows that Bitcoin whales' holdings have grown to 25.16% of the total supply and their net accumulation has continued recently.
Bitcoin investors with 1,000 to 10,000 BTC have continued to buy recently
According to on-chain analytics firm Santiment, BTC whales have accumulated more than 266,000 BTC since the start of the year. The indicator of interest here is “Supply Distribution,” which tracks the percentage of the total circulating Bitcoin supply that the various wallet groups currently hold.
Addresses are divided into these cohorts based on the number of coins they currently have in their balance. For example, the group 10 to 100 coins includes all wallets that have at least 10 and a maximum of 100 BTC.
Offer distribution summarizes the amount contributed by investors in a particular group as a whole and calculates what percentage of the offer they contribute.
Of interest in the current discussion is the cohort of 1,000 to 10,000 BTC. At the current exchange rate, the floor for this cohort is $65 million, while the cap is $650 million.
The investors belonging to this group are obviously very numerous and are therefore popularly called “whales”. Because whales can move large amounts quickly, they have the potential to influence the market. For this reason, their behavior can be worth watching.
There are also whales beyond the 10,000 BTC cap of this cohort, but with such a large scale, companies like exchanges that aren't exactly regular investors come into play.
Here is a chart showing the trend of Bitcoin supply distribution for the 1,000 to 10,000 coin group over the past few months:
NewsBTC
As shown in the chart above, Bitcoin supply distribution for this important group of investors has seen a net increase so far in 2024. Whales purchased 266,000 BTC ($17.2 billion) during this period.
However, this accumulation was not consistent. As can be seen in the chart, whales sold off the rally that would eventually lead to the asset's new all-time high and bought back in once the decline was over.
As BTC has consolidated, its supply has also consolidated. Still, the recent change in the metric is to the upside, suggesting that these huge holders may be supporting the current recovery push.
As of the latest accumulation, the 1,000 to 10,000 coin group holds 25.16% of the supply, meaning more than a quarter of all Bitcoin in circulation is in the wallets of these large investors.
While whale buying is bullish, current investor sentiment may not be so. As can be seen from the data for the Weighted Sentiment metric provided by Santiment in the chart, investors are currently exhibiting FOMO towards the asset.
Historically, Bitcoin has tended to perform contrary to the expectations of the majority, so FUD/Fear has been ideal for the start of uptrends. FOMO/Greed, on the other hand, has been the place where peaks have become likely.
BTC price
At the time of writing, Bitcoin is trading at around $64,700, up more than 7% in the past week.
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