Connect with us
Active Currencies 14431
Market Cap $2,640,893,344,256.00
Bitcoin Share 50.04%
24h Market Cap Change $-2.93

Bitcoin: Whales accumulate despite stagnating prices – Is this why?

2min Read

Bitcoin’s value remains steady while whales accumulate and older coins change hands. MVRV ratio declines as selling pressure cools off.

Bitcoin: Whales accumulate despite stagnating prices - is this why?

Share this article

  • Despite Grayscale’s ETF developments, Bitcoin’s price stagnated, causing concern.
  • Whale accumulation and aged Bitcoin movements indicated potential market shifts.

Despite Grayscale’s ETF moving closer to seeing the green light, the price of Bitcoin [BTC] remained stagnant. This event made many traders pessimistic about whether Bitcoin will see growth in the future.


Read Bitcoin’s [BTC] Price Prediction 2023-2024


Whales move in

However, according to Santiment, whale accumulation was on the rise. Notably, sixteen more wallets held between 100-1K BTC. As key stakeholders grew, the argument for a bullish future got stronger.

Source: Santiment

Meanwhile, there was a notable movement of older BTC. More than 16,000 Bitcoins aged between two and five years have recently been moved. Transactions of this magnitude and age are relatively rare in the Bitcoin network, and this occurrence has garnered considerable attention.

 

Transaction volume on the Bitcoin network also saw a significant increase. Recently, Glassnode’s data reported that the median transaction volume over a 7-day moving average reached a five-month high at $324.79.

This uptick in activity reflected an increasing number of transactions on the Bitcoin blockchain, which could have diverse effects on the market.

Higher transaction volume could indicate growing adoption and usage of Bitcoin, but might also result in increased network congestion.

Looking at the numbers

At the time of writing, Bitcoin’s price was $26,700. Yet, the MVRV Ratio had undergone a decline over the past month. The MVRV Ratio compares the market value of Bitcoin to its realized value.

A lower MVRV Ratio suggests that most addresses are not as profitable, potentially reducing the chance of a mass sell-off. This trend is essential to explore as it signals shifts in sentiment and holder behavior.


Is your portfolio green? Check out the BTC Profit Calculator


Simultaneously, the king coin’s velocity spiked over the last few days. The velocity of a cryptocurrency reflects its economic activity. A rapid increase in velocity may indicate higher liquidity, increased trading, or even speculative trading.

On the contrary, the Total Amount of Holders fell during this period as well. A decreasing number of holders could be interpreted as a consolidation of ownership or a reduction in new participants.

Source: Santiment

Share

Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.