Key Insights:
- Bitcoin whale wallets have risen to a 6-month high, with addresses holding more than 10,000 BTC now totaling 90.
- The addresses accumulated over 46,000 BTC on August 9, even as the smallest holders are dumping.
- Bitcoin declined today after sustained price action that pushed it to $65,000.
The number of Bitcoin wallets holding at least 10,000 BTC has risen to a six-month high. According to crypto intelligence firm Santiment, 90 wallets now fall into that elite wallet category, a sign that the biggest holders are returning to the market.
Analysts at the firm noted a 7.1% rise over the past eight weeks, with a net gain of six wallets. By comparison, the number of micro wallets has been dropping with retail traders dumping amidst the Coldcard hack and CLARITY Act delays.
Bitcoin Whales Accumulating as Others Sell
The signs of increasing demand by the elite wallet cohort are more evident with the CryptoQuant 60-day accumulation vs distribution by cohort metric. According to the data, the 10,000 BTC wallets recorded a net accumulation of 46,420 BTC on August 9, the highest since March 15.
Interestingly, the same cohort only accumulated 23,238 BTC at peak by mid March, showing that accumulation has actually doubled from that period.
However, wallets that have between 0.1 – 1 BTC dumped 9,700 on August 9. This distribution is a sharp departure from the 11,600 BTC in accumulation by the same group on July 5.
It reflects how the two groups of traders are positioning for Bitcoin’s next move. While the biggest whales are buying, those with the smallest balances are selling.
Santiment analysts believe this could mean the next major price movement will be a bullish one for Bitcoin. However, Crypto analyst Amr Taha noted that cohort data alone is not enough to determine price direction, but it is an important market-structure signal.
BTC Sees Slight Slip in Price Ahead of US Data Reports
Meanwhile, Bitcoin fell by almost 2%, dropping as low as $63,500 before recovering to $64,000. The decline means BTC could not maintain the August rally that has pushed it to $65,000. It is now down 28% year-to-date.
Interestingly, CryptoQuant analysts predicted this, noting a lack of trend strength. Still, it is too early to determine if the rally has ended or the flagship asset just experienced a brief correction.
However, upcoming US data reports could have a big impact on Bitcoin’s next price move. The US is expected to release the Consumer Price Index (CPI) and Producer Price Index (PPI) reports this week.
These two reports usually influence expectations of monetary policy and inflation. The market was already expecting at least one potential rate hike this year, but the poor July jobs report has increased expectations that the Fed will leave rates as they are.
Bitcoin whales appear to be counting on this, hence the decision to increase their accumulation.
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and equity markets can be highly volatile, and readers should conduct their own research before making investment decisions.
Oluwapelumi Adejumo is an experienced cryptocurrency journalist who has contributed to leading blockchain news platforms, including CryptoSlate and BeInCrypto.
