With the price of Bitcoin (BTC) soaring to the $70,000 level, whale wallets are accumulating BTC at a rate very similar to the rate from July 2020 to January 2021, when Bitcoin rose 550%.
According to Minkyu Woo, a verified author at CryptoQuant, this historical trend has investors excited about a potential BTC breakout. As can be seen in the chart below, the rate of Bitcoin whales on spot exchanges is currently similar to the rate observed around July 2020 following the coronavirus-induced crash in March.
The author notes that whales continue to accumulate BTC despite short-term price fluctuations because they are positioning themselves for long-term price increases. Min-gyu Woon said this in X-Post.
“Whales are ready for “FOMO” with stupid money.”
Cointelegraph previously reported that whale wallets have amassed more than 1.5 million BTC over the past six months, with each of these wallets accounting for more than 1,000 BTC, or $68 million in today’s money.
The new whale wallet accounts for 9.3% of total supply.
CryptoQuant CEO Joo Ki-young Joo said that new whale wallets with an average coin life of less than 155 days also hit a new high of 1.97 million BTC.
One of the key differences between these whale wallets and on-site exchanges is that these are non-miner wallets and potentially managed. About the net profit of this wallet, the lord said this:
“Their BTC balances have surged 813% YTD, now accounting for 9.3% of total supply and currently valued at $132 billion.”
Related: BTC Price Rises ‘To Horizontal’ as Bitcoin Whale Buys 1.5 Million BTC — Analysis
Long-term Bitcoin holders may be ‘stabilized’
While whale wallets indicate an optimistic outlook for the future, long-term holders and miners may continue to add some resistance to the BTC price. IT Tech, CryptoQuant’s on-chain analyst, shared his thoughts and pointed out that long-term holders are potentially stabilizing or taking profits.
Meanwhile, the sustainability of miners’ profits has recently increased. This means that it incorporates payment periods that are often correlated with Bitcoin price peaks.
However, the analyst added that the market could absorb any form of selling pressure as short-term holders are turning to accumulation. The analyst said:
“It is important to monitor STH, LTH and miners. A change here could influence BTC’s next move as the market watches for new accumulations or profit-taking.”
Related: Early Bitcoin Era Whale Moves $630,000 to Kraken, $5.5 Million in 2 Months