Key Points
- Bitcoin whales now hold over 20% of the total Bitcoin supply, reflecting a 5% increase in the past six months.
- Bitcoin’s exchange reserves continue to decline, indicating a long-term hold strategy by many investors.
Bitcoin Whales Increase Accumulation
Bitcoin accumulation has significantly risen in recent months, especially by addresses holding between 100-1,000 Bitcoin (BTC).
These addresses now hold over 4 million BTC, which is more than 20% of the total Bitcoin supply. This is a 5% increase compared to six months ago.
This increase in accumulation indicates a growing confidence in Bitcoin’s long-term potential, especially amid volatile market conditions.
Decline in Bitcoin’s Exchange Reserves
The recent accumulation by large addresses is a bullish sign, and the decreasing trend of Bitcoin’s exchange reserves reinforces this positive outlook.
According to CryptoQuant data, Bitcoin reserves on exchanges have consistently declined.
The current exchange reserve stands at about 2.68 million BTC, a decrease from roughly 2.93 million BTC six months ago.
This decline, along with the increase in Bitcoin accumulation, suggests that many holders are choosing to hold onto their Bitcoin rather than sell or trade it.
This indicates a long-term hold strategy and growing confidence in future price appreciation.
The reduction in exchange reserves and increased accumulation suggest a tightening supply, which could lead to upward price pressure.
Bitcoin’s Price Increase
In the latest trading session, Bitcoin’s price increased by over 1%, reaching around $54,881.
At the time of writing, Bitcoin’s price has risen further to approximately $55,300, with a slight increase of less than 1%.
When the accumulation phase began, Bitcoin was trading above $60,000. This means that early accumulators are currently holding their assets at a loss.
However, if Bitcoin can break above the $65,000 price range, early accumulators could shift into significant profit territory.
