A popular on-chain analyst reveals that BTC is going through a massive accumulation phase with huge players currently holding hundreds of billions of dollars worth of Bitcoin. Here is the analyst’s assessment.
In the latest issue of the Blockware Intelligence newsletter, analyst William Clemente said that despite BTC’s volatile price action, market participants are buying and holding BTC at a historical rate.
“Under the surface, there is an intense accumulation phase on-chain. Exchange exits have reached a rate that has only occurred three times before in Bitcoin history: after March 2020, after December 2020 (most were GBTC), and after September 2021.”
Along with the massive outflow of Bitcoin from digital asset exchanges, Clemente emphasizes that whales bought the leading asset by market cap after selling their BTC holdings for most of the year.
“This week saw a surge in whale stocks for the first time since January, with an increase in supply held by entities holding more than 1,000 BTC (filtered for known on-chain assets such as exchanges).”
Judging by Clemente’s chart, Bitcoin whales currently hold more than 6.95 million BTC, collectively worth over $280.59 billion.
On the other hand, Clemente also points to an on-chain metric that shows the tendency of market participants to hold BTC treasures. According to the analyst, the supply of Bitcoin (BTC), which has remained untouched for at least a year, is at a record level.
“Another measure of holding behavior is to look at the amount of supply that was active a year (and more) ago; A simple but powerful measure. As of this week, an all-time high of 63.7% of Bitcoin supply has not moved in at least a year.”
Despite the current Bitcoin supply dwindling, analyst Clemente says that BTC is currently in the “neutral zone.” According to the analyst, Bitcoin is seeing a value investment in the low $30,000 range or a momentum trade when it rises above $47,000.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.