On-chain data shows that large Bitcoin holders are capitalizing on lower prices as they have switched back to accumulation.
Bitcoin Whales Are Now In Net Buying Mode
According to data from the market intelligence platform IntoTheBlock, large holders are currently buying BTC. The on-chain indicator of relevance here is the “Large Holders Netflow,” which tracks the net amount of Bitcoin entering into or exiting the wallets associated with these significant holders.
In the context of this analysis, ‘Large Holders’ are defined as entities holding at least 0.1% of the cryptocurrency’s total supply, which is currently valued at approximately $1.67 billion. Thus, only the most prominent investors meet the threshold to be classified within this category.
When the value of the Large Holders Netflow is positive, it indicates net inflows into their wallets, suggesting a bullish sentiment among these significant entities. Conversely, a negative netflow signifies selling activity and can lead to bearish outcomes for Bitcoin.
The chart provided by the analytics firm illustrates the trend in Bitcoin Large Holders Netflow over the past week:
The graph shows that the BTC Large Holders Netflow had turned negative earlier this week, indicating that these mega whales were participating in net distribution. Following this, Bitcoin’s price experienced a decline, suggesting that the selling behavior of these large holders might have contributed to bearish market trends.
However, this trend has now reversed, with large holders beginning to accumulate once more, as evidenced by the indicator’s return to positive territory. Recently, the analytics firm reported that these entities have added nearly 15,000 Bitcoin tokens to their wallets since the asset fell below the $90,000 mark. This behavior indicates that they perceive current price levels as a strong buying opportunity.
The ongoing accumulation by these whales could potentially exert a bullish impact on the price of BTC, similar to the effects of their earlier selloff. Nonetheless, Bitcoin continues to slide down the charts.
Current BTC Price
Bitcoin experienced another 2% drop in the last 24 hours, leading its price to settle at around $84,500.
