- Bitcoin accumulation by large holders has begun, according to Santiment data.
- Wallets with at least 10 BTC have added 154,560 coins in the past 5 months.
- These wallets play a crucial role in both bear and bull markets.
Bitcoin accumulation by large holders signals potential end to bear market, with 154,560 BTC added in the last 5 months.
Bitcoin Accumulation by Large Holders
Bitcoin (BTC), the world’s leading digital asset by market capitalization, could be poised for a surge as large holders, often referred to as “sharks,” accumulate the cryptocurrency. According to blockchain data platform Santiment, wallets holding 10 or more BTC have continued to purchase the cryptocurrency in recent months. This trend suggests a potential end to the bear market.
The Role of Large Wallets in Market Cycles
Santiment noted that these larger wallets tend to drive prices higher during bullish cycles and contribute to bear markets when they sell off. The blockchain analysis platform shared a chart illustrating the behavior of these Bitcoin holders during bullish and bearish periods. The chart clearly shows that these wallets begin accumulating significant amounts of BTC before each bullish price movement.
Recent Accumulation Trends
Santiment confirmed that Bitcoin wallets with at least 10 BTC have added 154,560 coins in the past five months, indicating renewed interest in the digital asset since the 2022 bear market, which resulted in substantial losses. Beginning October 21, 2019, these wallets continued to accumulate BTC amid a market decline, and this trend persisted until early 2022. Subsequently, on February 16, 2022, a mass sell-off of Bitcoin occurred, leading to a sharp drop in the cryptocurrency’s price.
Impact of Spot Bitcoin ETFs Approval
Since December 29, 2023, these wallets, holding 10 BTC or more, have resumed accumulating BTC coinciding with the approval of spot Bitcoin ETFs in the U.S. by the Securities and Exchange Commission. This regulatory development has likely contributed to the renewed interest and accumulation of Bitcoin by large holders.
Conclusion
The recent accumulation of Bitcoin by large holders, as indicated by Santiment data, suggests a potential end to the bear market. With wallets holding 10 or more BTC adding 154,560 coins in the past five months, the market may be gearing up for a bullish phase. The approval of spot Bitcoin ETFs in the U.S. has further fueled this trend, highlighting the significant role of regulatory developments in the cryptocurrency market.
