- Bitcoin investors holding between 100 and 1,000 BTC have been on a buying spree in the past two months, according to on-chain data.
- These investors, known as “sharks,” have significantly increased their holdings, even compared to historical accumulation streaks.
- While some argue this surge might be due to smaller exchange-traded funds (ETFs), others believe it reflects genuine demand from non-central entities.
Bitcoin sharks, investors holding between 100 and 1,000 BTC, have been aggressively accumulating Bitcoin in the past two months, marking an unprecedented buying spree in the crypto market.
Unprecedented Buying Spree by Bitcoin Sharks
As analyst Willy Woo explains in a new post, a group of high-net-worth Bitcoin investors, popularly known as “sharks,” have been buying heavily recently. These investors currently hold between 100 and 1,000 BTC in their wallets, equivalent to about $6.2 million to $62 million at the current cryptocurrency exchange rate.
Impact of Sharks on the Bitcoin Market
Sharks, while less significant than the largest holders known as “whales” (1,000+ BTC), can still exert some influence in the market. The Glassnode chart shared by Woo shows a sharp increase in the total amount of Bitcoin supply held by these investors over the last few years, particularly in recent weeks. This increase suggests aggressive accumulation by this cohort, unmatched by any buying phase in the past few years.
Debate Over the Cause of the Accumulation
While this accumulation is impressive, especially considering the high trading prices of Bitcoin, some argue it looks unnatural due to its sharpness. On-chain analyst Checkmate suggests that this metric might largely measure coins going into smaller exchange-traded funds (ETFs). However, Woo counters this by arguing that ETFs wouldn’t be enough to account for the rise, implying the presence of demand from non-central entities.
Conclusion
The recent buying spree by Bitcoin sharks marks a significant development in the crypto market. While the cause of this accumulation is debated, the impact is clear – a substantial increase in the holdings of these high-net-worth investors. As the crypto market continues to evolve, the actions of these sharks will undoubtedly be a key factor to watch.
