Bitcoin has approached a retest of the $28,000 mark in the past day as on-chain data shows that large investors have been accumulating the asset.
Bitcoin’s Large Holders Bought In Leadup To Latest Price Surge
According to data from the on-chain analytics firm Santiment, the BTC investors with 100 to 1,000 BTC have sharply grown in number recently. The relevant indicator here is the “Supply Distribution,” which tells us about the total number of coins that each investor group is holding right now.
The investors or addresses are categorized into these groups based on the amount of Bitcoin that they are carrying currently. Those holding between 1 and 10 BTC, for instance, are put in the 1-10 coins cohort.
In the context of the current discussion, the 100-1,000 BTC group is the one of focus. At the current exchange rate, this range converts to about $2.78 million at the lower bound, and $27.8 million at the upper one. The investor segments belonging to this group are the sharks and the smallest of the whales.
Now, here is a chart that shows the trend in the Bitcoin Supply Distribution of this address range over the past few months:
Looks like the value of the metric has shot up in recent days | Source: Santiment on X
When Santiment shared this chart, the Supply Distribution of this Bitcoin group had just registered a sharp jump, implying that the combined holdings of these large investors had seen a rapid expansion.
During this surge, the number of sharks/small whales in the sector grew by 16 inside a 24-hour span, which is the largest increase that the metric has seen since more than a year and a half ago.
There can be two interpretations of this trend. Either there was accumulation from the smaller investors that led to them being promoted into this cohort or there was distribution from the larger groups that resulted in some of their members’ holdings dropping to this range.
In the chart, Santiment has also attached the data for the 10-100 coins group, which is the cohort just below this one. From its Supply Distribution trend, it’s clear that just as the 100-1,000 coins group rose, this smaller group saw a plunge.
This would seemingly confirm that buying indeed took place in the market, as it was some of the 10-100 coins investors who bought and increased their holdings just enough to become a part of the 100-1,000 coins group.
Interestingly, since this accumulation occurred, Bitcoin has observed a rally toward the $28,000 level. Given the close timing, it’s possible that this buying pressure helped the cryptocurrency see this growth.
BTC Price
Bitcoin retested the $28,000 level at the peak of this rally but has since retraced back a little. If the large investors continue to back the run in the coming days, though, the coin should jump back up in the coming days and have another go at the mark.
The price of the coin seems to be trading just under the $27,800 level right now | Source: BTCUSD on TradingView