Home Markets Bitcoin Whale Addresses Are Piling Up – What This Could Mean For Price

Bitcoin Whale Addresses Are Piling Up – What This Could Mean For Price

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Bitcoin Whale Addresses Are Piling Up – What This Could Mean For Price

Of the $123.13 million withdrawn from the cryptocurrency market in the past 24 hours, Bitcoin [BTC] liquidations during the same period totaled $25.30 million, data from coin glass revealed.

As of this writing, the king coin has traded hands at $19,857.00. It last traded at this level in July when the bulls took over the market and started an uptrend.

Since FUD was launched on the market by Jerome Powell’s commentary on Friday August 19, BTC has fallen by 7%.

According to data from Sanimentdespite the steady decline in the price of BTC, top whale addresses have increased their BTC holdings over the past month.

Over the past 30 days, however, addresses holding between 100 and 10,000 BTC have increased by 103. This brings the cumulative addresses on the BTC network holding between 100 and 10,000 BTC to 15,847 addresses.

According to Santiment, this is a positive sign because:

“There is a correlation between the price of BTC and the number of addresses holding $100-10,000 BTC.”

Source: Santiment

A crucial question to ask is whether this will be enough to push the price of BTC higher in the short term. Let’s look at other metrics for clarity.

30-day on-chain analysis

Over the past 30 days, the price of BTC started to decline around August 13 after hitting a high of $24,424. Three days later, unique addresses that traded the king coin daily also started to drop.

Since Powell’s comments, daily active addresses on the BTC network have dropped by 79%. Over the past 30 days, that’s down 81%, according to data from Santiment.

It is known that while the past performance of an asset’s daily active addresses is not indicative of what to expect in the future, sustained price increases have often gone hand in hand with an increase in address activity. . This means that the network is healthy and that there is an accelerating value transfer between the various investors.

If this decline in daily active addresses on the BTC network continues, the price of BTC seeing any significant near-term price growth could be overblown.

Source: Santiment

Moreover, a sustained rise in the price of a crypto asset is highly correlated with an increase in its social activity. A popular social metric to consider in this regard is Weighted Sentiment.

This shows the average mood/sentiment of the market towards any asset. On a 30-day average, as the price per BTC gradually declined, a bearish mood descended on the market. Therefore, a negative value of -0.28 was recorded by the weighted sentiment metric of the coin.

Source: Santiment

However, despite the general decline in the crypto market occasioned by the general downturn in the financial market, investors remain bullish on BTC.

According to data from Santiment, the total amount of BTC found on exchanges has fallen from 10.18% of the total circulating supply of Bitcoin to 9.07% over the past 30 days.

This continued decline is capable of inducing a “supply shock,” which could drive up the price of BTC in the short term if aggregate demand remains unchanged.

Source: Santiment

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