Bitcoin whales, investors who hold large amounts of Bitcoin, have notably increased their holdings. According to data analytics firm IntoTheBlock, these major players have added approximately $3 billion to their Bitcoin holdings since the beginning of the year, equating to around 76,000 BTC. This development is a key indicator of the confidence and investment strategy of the largest holders in the cryptocurrency space.
Holder distribution
The term "whales" in the cryptocurrency world refers to individuals or entities that hold large quantities of digital currencies. Historical data reveals a dynamic shift in the distribution of Bitcoin holdings.
The distribution of Bitcoin holdings across different investor classes provides further insights into market trends. Over a 30-day period, smaller holdings saw mixed changes: Accounts with 0-0.001 BTC increased by 1.02%, while those holding between 0.001-0.01 BTC and 0.01-0.1 BTC witnessed decreases of 1.90% and 1.36%, respectively. Notably, accounts holding between 10K-100K BTC saw an increase of 2.88%, reflecting a concentration of wealth at the higher end of the spectrum. When analyzing addresses by their holdings in USD, a similar trend emerges. Addresses holding less than $1 increased by 4.61%, while those holding over $10 million decreased by 2.15%.
Recent trends show a 1.31% decrease in whale holdings over 30 days, juxtaposed with a 2.15% increase among investors and a marginal 0.02% decrease in retail holdings.
Interestingly, the seven-day change in large holders' inflow increased by 119.83%, while the 30-day and 90-day changes showed a decrease of 83.23% and 91.25%, respectively.
This contrastingly large outflow in the short term, with an increase of 8,274.96% over seven days, indicates a volatile yet strategic play by these large holders, impacting the overall market sentiment and pricing.
Underwhelming price performance
The month opened with Bitcoin at a value of $42,208 and witnessed a notable surge, reaching a high of $49,000 following the approval of multiple Bitcoin ETFs.
However, the cryptocurrency did not maintain this upward trajectory. Mid-month, Bitcoin saw fluctuations, with its price oscillating between $41,801 and $43,148, indicating a period of uncertainty and adjustment among investors.
This trend continued as the Bitcoin price dropped below the $40,000 mark. The latter part of January showcased a partial recovery, with the cryptocurrency closing at $42,120 on Jan. 27 after opening at $41,863.
Vladislav Sopov
Gamza Khanzadaev
Denys Serhiichuk
