According to a popular on-chain expert, Bitcoin is in the midst of a massive accumulation phase, with major entities currently holding hundreds of billions of dollars in BTC.
According to William Clemente in the current edition of the Blockware Intelligence newsletter, despite BTC’s unpredictable price movement, market participants are buying and holding BTC at a historic rate.
“Underneath the surface, there is a heavy phase of accumulation on-chain. Exchange outflows have reached a rate that has only ever occurred three times before in Bitcoin’s history: following March 2020, December 2020 (a lot of which was likely GBTC), and September 2021.”
Along with the large outflow of Bitcoin from digital asset exchanges, Clemente notes that whales are buying the dominant position by market cap after unloading their BTC stacks for most of the year.
“This week has seen an uptick in whales holdings for the first time since January, showing an increase in supply held by entities with over 1,000 BTC (filtering out for known on-chain entities such as exchanges).”
According to Clemente’s chart, Bitcoin whales now control more than 6.95 million BTC worth more than $280.59 billion at the time of writing. Clemente also mentions one on-chain statistic that shows market participants’ tendency to keep their BTC troves. According to the expert, the supply of Bitcoin that has been sitting inactive for at least a year is at an all-time high.
“Another measure of holding behavior is simply looking at the amount of supply last active a year+ ago; a simple but powerful metric. As of this week, an all-time high 63.7% of Bitcoin’s supply hasn’t moved in at least a year.”
Despite the fact that Bitcoin’s quantity is falling, Clemente believes the currency is currently in “no man’s land.” According to the expert, Bitcoin is a valuable investment in the low $30,000 range or a momentum play if it reaches $47,000.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
KAZ
CoinCu News
