Key Points
- Bitcoin whale accumulation has significantly increased since the start of the year, leading to a rise in its price.
- Bitcoin’s recent rally has triggered profit-taking activity among miners.
Bitcoin’s Rising Whale Accumulation
Bitcoin [BTC] has witnessed a substantial increase in whale accumulation since the start of the year, as noted by IntoTheBlock in a recent post. This trend, along with the overall bullish sentiment in the market, has led to Bitcoin trading at a three-year high.
As of now, BTC is trading at $61,969. Over the past month, the coin’s value has surged by nearly 50%, based on CoinMarketCap data.
This period has seen a significant rise in the inflow from large Bitcoin holders. Large holders, as defined by IntoTheBlock, are investors who hold more than 0.1% of the coin’s circulating supply. A rise in large holder inflow indicates strong buying activity among these investors.
In the past month, the inflow from large Bitcoin investors has skyrocketed by 573%. This suggests that investors who hold over 0.1% of Bitcoin’s circulating supply have been accumulating large amounts of the coin on centralized exchanges and moving their acquisitions to cold storage.
Profit-taking Activity Among Miners
Conversely, outflows from this investor class have significantly dropped, as per IntoTheBlock data. Over the last 30 days, outflows from large Bitcoin holders have decreased by 95%.
Bitcoin’s recent surge above $64,000 has led to an increase in profit-taking activity among the network’s miners. Data from CryptoQuant shows that Bitcoin’s Miner Reserve, which tracks the amount of coins held in miners’ wallets, has seen a slight decrease over the past week.
During this time, the number of coins in these wallets has fallen by 0.4%. Currently, there are 1.8 million Bitcoins held in miner wallets, the lowest since March 2021. A decrease in this metric suggests an increase in coin sell-offs among network miners.
The period under review also saw an increase in the flow of coins from miners to exchanges. On March 1st, the metric reached a three-month high when 2,349 Bitcoins were sent to exchanges for sales from miners’ wallets. This indicates that miners are selling more Bitcoin than they are mining for profit.
