Key Points
- Despite a price decline, Bitcoin accumulation by crypto whales has significantly increased in the last month.
- The trend indicates renewed confidence among high-net-worth investors in Bitcoin, possibly anticipating future price increases.
Despite the recent price decline, Bitcoin has seen a significant increase in accumulation by cryptocurrency whales over the last month.
This data suggests that large holders have accumulated a substantial volume of Bitcoin, leading to an increase in the value of their holdings.
Whales Accumulate During Price Drops
Data from Lookonchain shows that a specific whale address intensified its Bitcoin accumulation as the previous month ended. In just two days, this whale accumulated a total of 5,800 Bitcoin, valued at nearly $400 million.
Despite a downward trend in Bitcoin’s price from the 29th to the 31st of July, the whale’s significant accumulation indicates a bullish stance by large-scale investors.
Whale Holdings Increase in Value
Data from IntoTheBlock reveals that July saw a significant increase in Bitcoin holdings by crypto whales, marking a notable accumulation period. Addresses that own at least 0.1% of Bitcoin’s circulating supply added over 84,000 Bitcoin to their holdings.
This accumulation represents the largest single-month tally in Bitcoin terms since October 2014, highlighting a substantial boost in whale activity.
Further analysis reveals that accounts holding over $10 million worth of Bitcoin have also seen an increase in the value of their holdings over recent months. The holdings of these addresses have now reached nearly $800 billion, accounting for over half of Bitcoin’s current market capitalization.
This trend of accumulation by whales can indicate bullish sentiment among key market participants, as they may anticipate higher prices in the future or see current levels as undervalued.
Whales Hold a 1% Advantage
The analysis of the Bitcoin Market Value to Realized Value (MVRV) ratio shows a slight increase to just over 1% at present. Despite a recent decline, the MVRV ratio started the month below 1% and subsequently rose, reaching a peak of 10.75% at its highest point this month.
As the MVRV ratio was above 1% at press time, it indicates that, on average, crypto whales that accumulated Bitcoin recently still held their investments with a profit margin of over 1%.
