U.Today – According to on-chain analytics firm Santiment, wallets holding between 10 and 10,000 BTC have collectively accumulated an additional 133 over the past month.
This significant accumulation is occurring even as smaller traders continue to dump their holdings, often eagerly selling them into the hands of these larger players.
In a tweet, Santiment wrote: “Wallets holding 10-10,000 BTC have collectively accumulated 133,300 more coins, while smaller traders continue to impatiently deposit their holdings into them.”
This accumulation trend highlights a strategic move by major holders, often referred to as “whales” and “sharks,” who are taking advantage of the current market conditions. While smaller traders have been selling their holdings, these major players have been steadily increasing their Bitcoin holdings.
With the accumulation, this category of Bitcoin addresses, which are wallets holding between 10 and 10,000 BTC, now hold 66.6% of the Bitcoin supply. At the time of writing, BTC was up 3.55% over the past 24 hours to $60,898.
Bitcoin reserves on exchanges hit annual lows
According to a recent analysis by CryptoQuant, Bitcoin reserves on exchanges have hit new lows this year. This drop may indicate less selling pressure, which favors a bull market if demand continues to increase.
The decline in reserves could also be attributed to the rise of self-custody, where investors seek greater control over their assets by holding them in cold storage solutions.
The outflow of Bitcoins to cold wallets often suggests that investors are more interested in holding the asset for a longer period of time, waiting for future price increases.
The implication is that as Bitcoin becomes less available on exchanges, so does liquidity for flash selling. The dominance of long-term holders in the market may expand, resulting in a more resilient market less prone to panic selling.
This article was originally published on U.Today
