The current bearish state of the overall crypto market has triggered fears of a prolonged downturn, especially as Bitcoin, the largest digital asset, continues to decline, recently reaching as low as $77,760. This marks a significant drop from its new all-time high of $109,000. However, amid this notable decline, there are indications that bullish sentiment may be returning among investors as they begin to accumulate more coins.
More Bitcoin Scooped Up By Whales And Sharks
Despite the ongoing price drop for Bitcoin, investor sentiment appears to be on the rise again. According to market intelligence platform Santiment, buyers are starting to return to the market, which could cast a bullish outlook for BTC.
On-chain data reveals that large investors, particularly whales and sharks, are increasing their Bitcoin holdings. These major players have experienced crucial market turning points over the last six months, influencing their recent BTC accumulation. Notably, a modest sell-off between mid-February and early March contributed to the latest downturn in the crypto market.
The recent uptick in accumulation, particularly among wallet addresses holding more than 10 BTC, suggests a renewed confidence in Bitcoin’s future performance. Over the past six days, these whales and sharks have purchased approximately 4,846 BTC, continuing to build their positions even as retail investors express heightened fear and panic.
Historically, positive trends in accumulation like these have catalyzed an upward move in BTC’s price in the short term. Consequently, Santiment remains optimistic about a bullish atmosphere for Bitcoin in the coming weeks.
In light of recent developments, Santiment suggests that this month could yield better results than the previous two. “Prices have not reacted to their buying just yet, but don’t be surprised if the second half of March turns out to be much better than the bloodbath we’ve seen since Bitcoin’s ATH seven weeks ago,” the platform noted.
This positive outlook hinges on whether BTC whales and sharks continue to accumulate significantly. As high-net-worth and institutional investors solidify their positions, Bitcoin’s supply dynamics may shift, potentially fostering an environment for sustained growth.
Small BTC Investors Follow The Trend
Additionally, this increase in buying interest has been observed among smaller investors during Bitcoin’s brief price surge earlier this week. Following the recent uptick, the number of small Bitcoin wallet addresses has increased by 50,000 compared to just a month ago.
Data from Santiment indicates that 37,390 new wallets were created among holders of less than 0.1 BTC, often referred to as ‘shrimps’. Moreover, wallet addresses holding between 0.1 BTC and 100 BTC grew by over 12,754, although those with at least 100 BTC saw a decrease of six.
While the increased volatility in the market might temper expectations of a significant bullish signal, Santiment highlights the rise in wallets holding more than 100 BTC as a potential indicator that a broader market breakout could be on the horizon.
