Santiment is a blockchain analytics company that has provided a detailed explanation of how Bitcoin has become one the most important indicators on the cryptocurrency market.
The price of bitcoin may be correlated with the holdings of investors who have at least 10 BTC.
It’s a brand new world post Santiment discussed a metric on X that was historically one of the leading indicators for the industry. This metric is the amount of Bitcoins held in wallets by Bitcoin investors who have at least 10 BTC.
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This threshold is equal to approximately $683,000. Investors who hold sums higher than this or equal to $683,000.
Key groups like sharks and whales These people fall into this group. This group is generally regarded as influential, and their behaviour can be something to watch.
The 10+ BTC group would not include only these major investors. However, its trend would at least partially reflect what they would do.
This chart shows how the total holdings of all investors in this category have changed over the past few years.
The graph above shows that the Bitcoin stock held by large investors has increased in recent months, indicating an accumulation of Bitcoins.
Santiment says that historically, the relationship between price and investor behavior has been in this area. “When they accumulate, cryptocurrencies rise. When they dump, extended bear markets come,” The analytics company explains its services.
Charts show examples of the trend. In October of 2019, the supply that this cohort held began rising. It continued to increase throughout the subsequent bull run in 2021.
In February 2022 the behaviour of these Bitcoin holders changed. Their combined holdings began to decline instead. It led to the decline of the market.
This decline halted after FTX crash The holdings of the investors started to trend sideways by 2023. The metric finally gained an upward trend at the end of 2018.
It is possible that this accumulation began due to the impending spot exchange-traded fund (ETF) Approval in January. After approval these investors maintained the buying pressure, culminating in a rally to the new All-Time High (ATH).
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In spite of recent Bitcoin struggles, the trend has not changed. According to historical trends, the price of Bitcoin may continue rising.
BTC price
Bitcoin is trading in the $68,300 range at this moment.
Chart from TradingView.com, image by Dall-E.
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Source: www.newsbtc.com