On-chain data suggests that demand for Bitcoin remains strong as new whales in the sector scoop up 200,000 BTC each week.
Bitcoin Whales Short-Term Holders Continued to Accumulate Recently
As CryptoQuant author Axel Adler Jr explains in a job on
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THE “short-term holders» (STH) refer to Bitcoin investors who have held their coins for less than 155 days. This cohort includes investors new to the market, as well as fickle traders who make moves often and do not tend to HODL.
Investors who exceed the 155 day threshold are placed in the “long-term holders» (LTH), which is a group generally considered to reflect the resolute side of the sector.
In the context of the current debate, the investors we are interested in are not ordinary STHs, but rather the enormous entities called whales. Formally, these investors are defined as those who hold more than 1,000 BTC in their portfolio.
At the current exchange rate, that lower limit is worth $61.5 million, which is indeed huge. Whales can be influential beings on the network due to these vast properties, so their behavior may be worth monitoring.
STH whales would naturally correspond to large holders who have only purchased in the last five months. Here is a graph that shows the trend of exchange outflows made by these new whales in the Bitcoin market over the last few years:
As seen in the chart above, the 7-day simple moving average (SMA) of Bitcoin whale exchange STH outflows had reached fairly high levels earlier in the year when the rally to the new all-time high price ( ATH) had reached a fairly high level. occurred.
Naturally, this spike suggests that demand for cryptocurrency purchases was high from new whale investors entering the space. At the peak, the indicator implied that accumulation was occurring at the rate of 452,000 BTC per week.
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Some of these purchases would correspond to demand from spot exchange-traded funds (ETFs) – new investment vehicles for Bitcoin approved only earlier this year and which offer an indirect way to invest in the asset under a format that may be preferable for more traditional investors.
The chart shows that demand from new whales has seen a sharp decline since the ATH, but the accumulation nevertheless remains substantial as STH whales are still potentially buying at a rate of around 200,000 BTC per week.
BTC Price
Bitcoin has continued to stagnate recently, with its price currently trading around $61,600, still very range-bound.
Featured image by Andrew Bain on Unsplash.com, CryptoQuant.com, chart from TradingView.com