Cross-chain data shows that bitcoin sharks and whales have continued to accumulate lately, something that could help the rally move parabolic this month.
Bitcoin sharks and whales have continued to add to their holdings
According to data from the on-chain analytics company saintBTC sharks and whales have been involved in other buying in the past two weeks. A relevant indicator here is the Supply Distribution, which tells us the total amount of Bitcoin held by each address group in the market at the moment.
Addresses are divided into these address groups based on the total number of coins they hold in their balances at the moment. For example, the 1-10 coin group includes all investors who currently hold between 1 and 10 BTC.
In the context of the current discussion, the groups of interest are “sharks” and “whales”. These are the investors who generally hold large sums in their portfolios, and their pooled coin range can be defined as 10 to 10,000 coins.
Due to the large amounts that these holders may have in their wallets, they can have some influence on the market. Of course, since whales are the larger of the two groups, they hold more power in this sector.
Since the movements of these stockholders can cause significant effects on the market, it can be useful to monitor their behaviour. The Supply Distribution of this coin group can provide hints as to exactly that.
Now, here is a graph showing how these investors’ supply has changed over the past few months:
The value of the metric seems to have been going up in recent days | Source: Santiment on Twitter
As shown in the chart above, the bitcoin supply distribution for the 10 to 10,000 coin group saw some pullback earlier in the year but bottomed out in mid-April.
At about the same time that the whales finished selling, the price of the asset reached a local high and saw a decline over the next two months. Even though the decline occurred, these whale sharks and sharks started to increase their holdings again, which indicated that they were buying the dips.
Later, when the cryptocurrency failed to show any signs of a resurgence, the supply of these investors stalled, meaning that these investors became reluctant to buy more.
After bottoming out in June, however, and the subsequent emergence of news regarding the launch of a new ETF, the whale sharks are starting to show some solid buildup.
In the past seven weeks, these investors have uploaded 154,500 BTC, a large portion of which has come in the past two weeks alone. The index value has now reached 13 million BTC, which means that the sharks and whales of Bitcoin now own 67% of the total circulating supply.
Those massive investors who continue to show strong aggregate buildup through this new phase of the rally could be a positive sign of things to come this month.
BTC price
At the time of writing, Bitcoin was trading at around $30,600, up 1% in the past week.
Looks like the asset has been mostly moving sideways in the last few days | Source: BTCUSD on TradingView
Featured image by Sebastian Pena Lambarri on Unsplash.com, charts from TradingView.com, Santiment.net
