20 April 2024
On-chain data shows that the largest number of investors in the Bitcoin market are finally buying, which could be bullish for the asset’s value.
Bitcoin Mega Whales Have Shown Net Inflows In The Past Day
In the past few weeks, the Bitcoin price has struggled to mount any significant bullish momentum as it has been stuck consolidating inside a range.
Earlier, while this was happening, the largest holders in the space had been sitting quietly, not buying or selling anything notable. According to data from the market intelligence platform IntoTheBlock, however, this appears to have changed in the past day.
Relevant holders here are the “Large Holders,” who, as defined by the analytics firm, are investors carrying at least 0.1% of the entire circulating Bitcoin supply in their wallets.
A little under 19.7 million tokens are circulating for the cryptocurrency, 0.1% of which would be 19,700 BTC. This amount is worth more than $1.26 billion at the current exchange rate of BTC.
Clearly, these large holders are quite large indeed, and in fact, they are much larger than the usual whale investors, who typically carry between 1,000 and 10,000 BTC. As such, it would perhaps be apt to call these humongous entities “mega whales.”
Since an investor’s influence in the market increases the larger their holdings, these mega whales would be the most powerful entities on the Bitcoin network. Therefore, their moves can have some consequences for the wider market.
IntoTheBlock has used the netflow on-chain indicator to track the movements of the Large Holders here, which measures the net amount of BTC entering or exiting the wallets of these investors.
The below chart shows the trend in this metric over the last few months:
As displayed in the above graph, the Bitcoin Large Holders netflow registered a notable positive spike yesterday, meaning these investors have received a net amount of coins into their wallets. The mega whales bought 19,760 BTC during this spike, worth more than $1.27 billion.
“Historically, accumulations by these addresses have often preceded rises in Bitcoin’s price,” notes the analytics firm. The chart shows that some extraordinary buys came from this cohort on the way to the new all-time high for the asset.
As such, it’s possible that these latest buys will also help the asset gain some bullish momentum in the near future. However, something to note is that the scale of the latest spike, although large on its own, isn’t quite as prominent as that of some of the large buys seen earlier.
BTC Price
At the time of writing, Bitcoin is trading at around $64,500, down more than 5% over the past week.