Amid the negative sentiment surrounding Bitcoin and the entire digital asset sector, BTC whales are becoming increasingly noticeable in the cryptocurrency market as the number of wallets holding 10 or more of the flagship coin achieved record high.
This growth underscores the mighty belief in Bitcoin’s long-term value as it navigates a challenging landscape of price volatility and regulatory hurdles. This is also what he points to BTC has solid fundamental support going forward, which is consistent with overall market optimism.
Bitcoin Whales accumulation has reached its highest level in 2 years
According to blockchain analytics firm Santiment, the number of these significant holdings has reached the highest level not seen since 2022, indicating a strategic move by major players to strengthen their position in the leading cryptocurrency asset.
On-chain data shows that as of February 2022, the number of wallets holding 10 or more BTC now controls an astonishing 82% of the supply, indicating a resurgence in faith in the cryptocurrency’s long-term value. Given the erratic nature of the cryptocurrency market and the regulatory uncertainty that has plagued it recently, this pattern is particularly significant.
Additionally, Santiment noted that a lot has happened since then, such as: Bitcoin value increased by over 226%, demonstrating its position as a potential coin in the cryptocurrency market.
The post said:
Wallets containing 10 or more Bitcoins have just reached the level of holdings from exactly 2 years ago. A lot has changed since then, including a +226% raise in Bitcoin’s market value.
Paying attention to FTX collapse in 2022the analytics platform highlights the cryptocurrency community’s belief that the incident effectively suppressed cryptocurrency prices in the second half of 2022. However, after the November 2022 exchange collapse, a clear correlation emerged between Bitcoin’s total market value and wallets holding more than 10 BTC.
The growing number of huge holding companies is noteworthy, as these whales often have a significant impact on market dynamics, especially with regard to price stability and liquidity.
Consequently, their accumulation of the flagship coin may be sanguine and possibly lead to an additional price raise. However, it is significant to confront the market knowing exactly what risks are involved, even though this accumulation may be a sign of bullishness.
Vast BTC holders deemed useless
Given these types of changes, TOBTC, a trading platform, is generally considered a bullish signal for price movement highlighted several analysts’ views on the development. According to the platform, BTC whale observing or following the movements of major Bitcoin investors is popular on social media, but investors find it useless for valuable analysis.
Related Reading: If Bitcoin ETFs Are Buying, Who’s Selling? Top analyst answers
Several analysts say whale movements are largely misunderstood and are not a reliable indicator of market trends. As such, they caution against making declarations about the market based solely on whale metrics, pointing out that the data is sometimes boisterous and essentially acts as a bait for social media engagement.
Featured image from iStock, chart from Tradingview.com
