A surge in Bitcoin whales holding more than 1,000 BTC above 43% of the total supply is hinting at another potential rally. Previously, Bitcoin whales have directly impacted the crypto asset’s price action in the market. With an increased volume of BTC holders, Bitcoin’s prices tend to rally historically.
Bitcoin Whales Holding Over 43% of the Supply
Data from on-chain analytics platform Santiment suggests that Bitcoin whales are holding over 43% of the coin’s supply as of Feb. 8, which coincided with Bitcoin’s 54-week high.
🐳 #Bitcoin‘s largest holders (1,000+ $BTC) currently hold 42.56% of the total supply after owning 43.29% on Feb. 8 (a 54-week high), which fueled the February #AllTimeHigh. A return above 43% will be an indication whales are looking to fuel another rally. https://t.co/od8cbYuMJi pic.twitter.com/adaZtm3JjE
— Santiment (@santimentfeed) March 3, 2021
These same whale holders were believed to have fuelled the cryptocurrency’s rally to its all-time high of $58,354 on Feb. 22.
As per analysts from Santiment, whales bought up the supply 12 days before Bitcoin’s rally to its all-time high. In the same way, a drop in the number of whale holdings suggests a drop in the price of the leading cryptocurrency.
Data indicates that if the same Bitcoin whales hold over 43% once again, it could lead to another rally.
When one needs to analyze the whales holding between 100,000 and 1 million BTC it only confirms that accumulation is a direct indicator of a bull rally.
For instance, the whale holders increased from only one on January 30 to three by the time Bitcoin hit the record high. With an exit of a Bitcoin whale, BTC dropped to $42,800.
Current BTC Trend Indicates Another Rally
A similar pattern was noticed in the number of addresses holding between 1,000 and 10,000 BTC. However, the number of whales in this range has significantly increased since September 2020 to hit 2,390 in the first week of February.
Usually, volatility increases in bearish markets and decreases when the market is bullish. The current market situation only suggests that another rally could be underway.
There are about 6.5 million Bitcoin addresses that control at least $100 worth of the cryptocurrency. With each Bitcoin whale holding over 1,000 Bitcoin, it has the power to influence the digital asset’s next rally.