On-chain data shows the Bitcoin sharks and whales added to their holdings right before the latest rally in the asset’s price occurred.
Bitcoin Whales Bought Before Grayscale Rally: Data. Bitcoin Investors Holding Between 10 to 10,000 BTC Bought Ahead Of Rally
Santiment, an on-chain analytics firm, reported that large BTC holders acquired a significant amount of the asset before Grayscale's win against the US Securities and Exchange Commission (SEC) was announced. The "BTC Supply Distribution" indicator divides addresses or investors into groups based on the number of coins they hold. Holders with addresses ranging from 10 to 10,000 BTC are popularly known as "sharks" and "whales" and can have some influence in the market due to their significant holdings. The chart below displays the trend in the Supply Distribution of these Bitcoin sharks and whales over the past month. Bitcoin Whales Bought Before Grayscale Rally: Data.
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According to the graph above, there was an increase in the Bitcoin supply held by large investors leading up to the bullish Grayscale news. During this period, these investors added around $388.3 million worth of the cryptocurrency to their wallets, which is a notable amount despite not being significant compared to their total holdings.
Santiment also provided data for another metric called "social volume," which measures the level of discussions about the asset across major social media platforms. The indicator observed a significant spike when the news broke out, and the general public became aware of Grayscale's victory. A similar spike had occurred during the market crash earlier in the month as FUD spread.
However, during the previous spike, the sharks and whales were selling off, while in the latest rally, they were accumulating in advance. This suggests that these large holders may have already known about the lawsuit's outcome and were anticipating the rally. As a result, they were able to take full advantage of the price surge.
While Bitcoin had surged towards $28,000 during the rally, the coin has since observed a pullback towards the $27,100 level. Nonetheless, BTC investors are still up 3% since the surge started.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.