On-chain data indicates that demand for Bitcoin remains high, with new entrant whales in the sector harvesting 200,000 Bitcoin every week.
Short-term Bitcoin whales have continued to accumulate recently
As CryptoQuant author Axel Adler Jr explained in a mail On X, demand among carrier whales has declined in the short term since its all-time high, although it remains strong.
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“Short-term holders” (STHs) refer to Bitcoin investors who have held their coins for less than 155 days. This group includes investors who are new to the market, as well as volatility-minded traders who make moves often and are not inclined to HODL.
Investors who exceed the 155-day threshold are placed among “long-term holders” (LTHs), a group generally considered to reflect the aggressive side of the sector.
In the context of the current discussion, the investors in question are not ordinary STHs, but rather huge entities called whales. Officially, these investors are defined as those who hold more than 1,000 Bitcoins in their wallets.
At the current exchange rate, this minimum is equal to $61.5 million, which is a huge number indeed. Whales can be influential creatures of the network due to these large possessions, so their behavior can be something worth monitoring.
STH whales naturally align with large owners who have only bought within the last five months. Here is a chart showing the trend in exchange outflows made by these new whales in the Bitcoin market over the past few years:
As shown in the chart above, the 7-day simple moving average (SMA) of Bitcoin STH flows rose to very high levels earlier in the year, when the rally towards a new all-time high (ATH) had taken place. booked up.
Naturally, this rise may indicate that demand for purchasing the cryptocurrency was high from new whale investors entering the space. At the peak, the indicator was that accumulation was occurring at a whopping rate of 452,000 BTC per week.
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Part of this purchase will align with upcoming demand from exchange-traded funds (ETFs) — new bitcoin investment vehicles approved only at the beginning of this year that provide an indirect way to invest in the asset in a format that may be preferable to more traditional investors.
From the chart, it appears that demand from new whales has seen a clear decline in the period since ATH, but the backlog is nonetheless significant as STH whales are still buying at a rate of around 200,000 BTC per week.
Bitcoin price
Bitcoin has continued to stagnate recently with its price trading around $61,600 at the moment, still largely within the range.
Featured image by Andrew Bain on Unsplash.com, CryptoQuant.com, and chart from TradingView.com