Recent data from Santiment has revealed a significant increase in the number of wallets holding 10,000 Bitcoin (BTC) or more. This accumulation has reached its highest point in the last six years, with these substantial wallets now containing over 3.19 million coins. This milestone was last achieved back in November 2018, indicating a notable trend in the market.
Over the past six weeks, these large BTC wallets have seen a substantial increase in their holdings, adding a remarkable 212,450 BTC. This accumulation represents a 1.05% increase in the total Bitcoin supply, highlighting the significant impact these wallets have on the market dynamics.
According to Santiment’s analysis, these large BTC addresses are likely dominated by exchange liquidity providers. These entities play a crucial role in maintaining the liquidity of Bitcoin on various trading platforms, ensuring smooth and efficient trading activities. Their influence on the market cannot be understated, especially during periods of extreme volatility.
Recent price fluctuations in the Bitcoin market have seen the price of BTC drop to $53,500 per coin before somewhat recovering to $57,932.57. This comes after Bitcoin reached an all-time high of over $73,700 earlier in the year. Since then, the price has been consolidating within a range of $60,000 to $70,000, leading to investor apathy and market indecision.
Key Pricing Level
Glassnode’s data indicates that the True Market Mean for Bitcoin currently sits at $50,000, representing the average cost basis per active investor. This level is crucial for the market to maintain if the macro bull market is expected to continue. The ability of Bitcoin to remain above this level will determine the future trajectory of the market.
The surge in large Bitcoin wallets and their accumulation of coins indicate a significant shift in market dynamics. The role of exchange liquidity providers and the influence of market volatility cannot be overlooked. As investors navigate through uncertain market conditions, the key pricing level of $50,000 will serve as a crucial indicator of the market’s direction in the coming months.