Newbie Bitcoin Whales Buying 200,000 BTC Per Week, Data Shows
May 14 2024 - 11:00AM
NEWSBTC
On-chain data suggests demand for Bitcoin remains significant as
newcomer whales in the sector have been scooping up 200,000 BTC
every week. Short-Term Holder Bitcoin Whales Have Continued To
Accumulate Recently As explained by CryptoQuant author Axel Adler
Jr in a post on X, the demand among the short-term holder whales
has decreased since the all-time high, although it still continues
to remain strong. Related Reading: Buy Or Sell Bitcoin? Quant
Reveals What Leading Metric Says The “short-term holders” (STHs)
refer to the Bitcoin investors who have been holding onto their
coins since less than 155 days ago. This cohort includes the new
investors in the market, as well as the fickle-minded traders who
make moves often and don’t tend to HODL. The investors who make it
past the 155-day threshold are put inside the “long-term holders”
(LTHs), which is a group that’s generally considered to reflect the
resolute side of the sector. In the context of the current
discussion, the investors of interest aren’t the ordinary STHs, but
rather the humongous entities called whales. Formally, these
investors are defined as those holding more than 1,000 BTC in their
wallets. At the current exchange rate, this lower limit is worth
$61.5 million, which is massive indeed. Whales can be influential
beings on the network because of these large holdings, so their
behavior can be something worth keeping an eye on. The STH whales
would naturally correspond to the large holders who only bought
within the past five months. Here is a chart that shows the trend
in the exchange outflows being made by these new whales in the
Bitcoin market over the last few years: As displayed in the above
graph, the 7-day simple moving average (SMA) of the Bitcoin STH
whale exchange outflows had spiked to pretty high levels earlier in
the year, when the rally towards the new all-time high (ATH) price
had taken place. Naturally, this spike would suggest demand for
buying the cryptocurrency was high from new whale investors
entering the space. At the peak, the indicator implied accumulation
was occurring at the rate of a whopping 452,000 BTC per week.
Related Reading: Bitcoin Will Be Set For New ATHs If It Breaks This
Resistance: Analyst A part of this buying would correspond to the
demand coming in from the spot exchange-traded funds (ETFs) – new
investment vehicles for Bitcoin only approved at the start of this
year that provide for an indirect way to invest into the asset in a
format that may be preferrable for the more traditional investors.
From the chart, it’s visible that the demand from the new whales
has seen a clear decline in the period since the ATH, but
accumulation nonetheless remains substantial as the STH whales are
still potentially buying at a rate of around 200,000 BTC per week.
BTC Price Bitcoin has continued to be stagnant recently as its
price is trading around $61,600 right now, still very much inside
the range. Featured image from Andrew Bain on Unsplash.com,
CryptoQuant.com, chart from TradingView.com
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