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Bitcoin’s whale wallets – defined as those holding 100 or more BTC – have increased by 297 lately. The latest figure represents a 1.9% rise in the past two weeks.
On the other hand, wallets containing less than 100 BTC have decreased by 20,629, a decline of 0.1% during the same period.
Bitcoin Whales Signal Potential Market Upswing
According to the crypto analytic platform Santiment, this shift indicates that the largest stakeholders in the crypto market are actively accumulating BTC, capitalizing on the selling pressure from retail traders.
Historically, such behavior by whales has led to bullish outcomes for bitcoin, essentially signaling that the market may be gearing up for a potential upward momentum as larger players strengthen their positions.
This accumulation trend aligns with another analysis by CryptoQuant, which revealed that whale holdings of bitcoin have reached an all-time high, with approximately 670,000 BTC currently in their possession. This accumulation is a strong indicator of confidence in the market’s long-term prospects.
“This accumulation phase can be characterized as calm before the storm in the medium and long term. The real surge in Bitcoin growth begins after whales gradually reduce their holdings until they reach negative percentage change values.”
Furthermore, the looming concern is whether bitcoin will reach a new price peak between the US presidential elections and late November. Failure to do so could foreshadow serious challenges for the ongoing bull cycle, raising alarms about potential downturns.
Positive Bitcoin Network Fundamentals
The increasing whale wallets come at a time when Bitcoin’s network fundamentals are showing encouraging signs. The network hash rate, for one, recently hit an all-time high. This surge in hash rate reflects intensified competition among miners, leading to an increase in mining difficulty.
It also means that BTC’s intrinsic value is on the rise, making it a more attractive investment for savvy investors, often referred to as SmartMoney. Furthermore, since mid-September, there has been a notable uptick in the number of active bitcoin addresses over the past 30 days, correlating with a significant rise in total fees as on-chain transactions gain momentum.
In the past, spikes in bitcoin’s price have been accompanied by increased active addresses and transaction volumes, indicating a healthy network. Even if the market faces a correction or consolidation phase soon, the underlying network fundamentals strongly suggest that BTC is on track for a bullish trend ahead.
This article first appeared at CryptoPotato
