Bitcoin whales are making a splash in the crypto market, with the number of wallets holding 100 BTC or more reaching a 17-month high. According to data shared by Blockchain analytics platform Santiment on August 31, over 283 wallets surpassed the 100 BTC mark in August alone. This brings the total number of such wallets to 16,120, breaking records not seen since early 2023.
Whales On A Buying Spree Amid Market Uncertainty
Santiment’s data indicates a notable trend: as retail traders exit, whales are increasingly stepping in to scoop up Bitcoin at what they see as bargain prices. The platform highlighted a net gain of 283 wallets holding at least 100 BTC in the past month, a significant surge that reflects growing confidence among large holders despite the recent price dips.
Adam Back, CEO of Blockstream and inventor of Hashcash, observed that since Bitcoin’s price dipped from over $62,000 to around $58,000 on August 28, whales have been on a relentless buying spree. “Whales back buying 450 BTC/day every minute all day long, since dip on 28th. Same as Bitcoin mined per day. Go ahead sell them cheap corn,” Back remarked, underscoring the aggressive accumulation strategy by these large investors.
The Impact of Retail Traders and Market Sentiment
As whales continue to accumulate, smaller traders, often referred to as “sharks” when holding at least 10 BTC, have also been increasing their holdings. However, many retail traders appear to be losing faith, selling off their assets as prices dip below their entry points. Crypto analyst and CryptoQuant contributor Axel Adler Jr. speculated that these smaller traders might be feeling the pressure as the price declines, leading to more sell-offs at a loss.
“In the current bull market, the metric has not fallen below 17%, the current figure is -8%. If it continues to decline, the number of people willing to sell coins at a loss could double,” Adler noted.
The Crypto Fear and Greed Index, a popular gauge of market sentiment, currently sits at 26, indicating a state of “Fear.” August was marked by more fear than greed, with an average rating of 37, a sentiment that likely contributed to the sell-offs among smaller traders.
Also Read: Bitcoin onchain indicator signals $58.5K price near ‘favorable’ buy level
A Positive Signal for the Future?
Despite the prevailing fear, some experts see the increased whale activity as a bullish signal. Vivek Sen, founder of Bitgrow Lab, suggests that historically, significant whale buying has often preceded new all-time highs for Bitcoin. “The last time whales bought a lot, Bitcoin hit a new ATH,” Sen stated, hinting that the current accumulation could be laying the groundwork for another price surge.
As Bitcoin whales continue to amass more of the digital asset, the question remains: will their buying spree lead to a new peak, or will the broader market sentiment drag prices down further? For now, all eyes are on the whales as they quietly but decisively shape the future of Bitcoin.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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