Bitcoin investors have been amassing more tokens at a rate of 42.2K BTC a month, suggesting increased long-term confidence.
Bitcoin (BTC) holders have been steadily accumulating BTC coins at a rate of approximately 42.2K BTC per month, indicating that the price-insensitive category of investors is absorbing a significant portion of the asset’s circulating supply.
This behavior is typical of a period of gradual accumulation that began over two years ago, according to market analytics tool Glassnode. Citing historical data from previous market cycles, Glassnode emphasized that the accumulation trend might last for another six to twelve months.
HODLers are currently accumulating coins at a rate of around +42.2K BTC/month, suggesting that the price insensitive class are absorbing a non-trivial portion of the currently available supply.
If we compare this behavior to prior cycles, we can see that this regime of steady… pic.twitter.com/UNnRpGd7Ch
— glassnode (@glassnode) June 20, 2023
Furthermore, this sustained accumulation coincides with a significant shift in BTC volume dominance on U.S. exchanges. Since the beginning of the year, Bitcoin’s volume dominance has skyrocketed to 44%, up from the previous 29% observed last year, per data from Kaiko.
This dominance increase suggests that market participants increasingly favor Bitcoin over other cryptocurrencies, reinforcing its position as the leading digital asset.
The ongoing accumulation by Bitcoin whales and the corresponding increase in BTC volume dominance on U.S. exchanges have essential implications for the cryptocurrency market.
The sustained accumulation by whales, coupled with the increased volume dominance, suggests that the market sentiment surrounding Bitcoin remains positive, despite recent market turbulence.
Furthermore, the cumulative build-up of price-insensitive holders has a market-stabilizing impact. As these major players use a considerable amount of the available supply, the risk of abrupt sell-offs, which may lead to rapid price falls, is reduced.
As a result, the price of Bitcoin may see less volatility, creating a more favorable climate for long-term investors and institutions to engage in the market.
Bitcoin Whale Accumulation Persists
Moreover, a recent tweet by Santiment, a market intelligence resource, notes that Bitcoin whales have been amassing more Bitcoin amid the downturn. Notably, whales holding 1,000 to 10,000 BTC have procured up to $3.5 billion worth of BTC since the first week of April.
🐳 #Bitcoin's whales have been busy while the crowd watched prices dwindle these past two months. Now back above $27k once again, it's far from coincidence that wallets holding 1K to 10K $BTC have accumulated a combined $3.5B since the first week of April. https://t.co/LUEaQLeXTy pic.twitter.com/z8U5tCa9OQ
— Santiment (@santimentfeed) June 20, 2023
The gradual accumulation by whales provides market stability. It reduces volatility, creating a favorable environment for long-term investors and institutions. These metrics reinforce the conviction that Bitcoin’s price trajectory may continue to rise in the coming months.