Bitcoin investments rose by more than 81,000 units in the wake of recent retail selling, as reported by Santiment.
Big Hands, Big Gains: It's all about the silent accumulation by mid-tier Bitcoin investors. Wallets holding between 10 to 10,000 BTC have been sneakily adding over 81,000 BTC in the past six weeks - a 0.61% increase in holdings. Meanwhile, smaller wallets dealing with less than 0.1 BTC have been offloading 290 BTC during the same period, painting a familiar narrative.
When retail traders look shaky and big players pounce, it often signals robust market support. These instances of quiet stacking are often precursors to significant price movements.
As of now, Bitcoin's value has climbed by 2.4% within the last day, trading at $96,733. One possible explanation for the optimistic market vibes could be the substantial exchange-traded funds inflows reported by Santiment. Since mid-April, these funds have pumped in a whopping $5.1 billion into Bitcoin ETFs. While the market anticipates the next big move, prices have been buttressed by this consistent buying pressure.
Fed's Meeting: Will Powell's Tone Rock the Bitcoin World? Given the ongoing accumulation, corporate buyers have been upping their Bitcoin stash. Analysts at brokerage firm Bernstein predict that corporate Bitcoin holding could swell to a staggering $330 billion by 2029. With the largest stakeholder, Strategy, potentially owning up to $124 billion of that total.
Adding more fuel to the bullish sentiment is the fresh pro-crypto policy in the U.S. New Hampshire has paved the way by becoming the first U.S. state to allow public investment in digital assets like Bitcoin. This new legislation could encourage other states to follow suit, paving the path for more government endorsement.
Bitcoin has surged around 30% since its early April lows, despite worries about interest rates and trade tensions. The narrowing of the Bollinger Bands on the Bitcoin chart, a common signal before significant price swings, suggests that the cryptocurrency is prepping for another breakout.
With large-scale accumulation, billions pouring into ETFs, and pro-crypto regulations gaining traction, the road to $100,000 seems more traversable than ever.
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Sources: [1] Santiment, [2] Yahoo Finance, [3] Reuters, [4] Coinbase, [5] Bloomberg
Further Insights
Institutional Accumulation:
- Apart from mid-tier investors, larger institutional entities and exchanges have also been subtly growing their Bitcoin holdings, even if their relative share has slightly decreased.
Miner Revenue Compression:
- Miner revenue compression, due to falling Bitcoin mining profitability, has been another factor adding to the consolidation and accumulation of Bitcoin.
- Mid-tier Bitcoin investors, as well as larger institutional entities and exchanges, have been silently accumulating Bitcoin.
- The silent accumulation by these investors could indicate a potential increase in Bitcoin holdings, especially since large wallets have been adding over 81,000 BTC in the past six weeks.
- Although the relative share of these larger institutional holdings has slightly decreased, the overall accumulation trend is still evident.
- Miner revenue compression has also contributed to the consolidation and accumulation of Bitcoin due to falling Bitcoin mining profitability.
- Tron, XRP, and other altcoins might not be immune to this accumulation trend, as bullish sentiments often spread across the crypto market.
- Whales, or large holders of crypto, have been observed accumulating tokens such as Tron, signifying their optimistic outlook towards the cryptocurrency market.
- In the era of technology-driven finance, investors are increasingly looking towards innovative investment opportunities like ICOs and DeFi platforms, aiming to diversify their portfolios beyond traditional stocks and bonds.
- By 2029, the corporate Bitcoin holding could swell to a staggering $330 billion, suggesting that the accumulation trend will continue as more companies invest in cryptocurrency for strategic financial purposes.
