The number of Bitcoin whales that are bullish for the price of BTC reaches a new record

In the past few weeks, the number of Bitcoin addresses (BTC) with more than 1,000 BTCs, often referred to as „whales,“ increased rapidly to about 2,088. This trend began shortly after the price of Bitcoin plummeted to USD 3,600 in March.

The data is relevant because historical data suggests that aggressive accumulation by large investors is often a sign of a new bullish cycle.

Over the past six years, Bitcoin has experienced periods of inverse correlation between wholesale accumulation phases and the price of BTC. Every time the number of directions that had substantial amounts of BTC decreased, the price of BTC went down.

This Bitcoin whale sold BTC at a price of $12,000 after keeping it for 2 years

Positive on-chain data generates optimism for Bitcoin
Whales tend to follow the areas that have the most liquidity, as they deal with large amounts of Bitcoin. As such, when whales believe the price of BTC has reached a peak, they sell quickly, which decreases the number of large addresses that have BTC.

As an example, in early 2018, after the price of Bitcoin reached $20,000, the number of Bitcoin addresses with 1,000 BTC ($11 million) dropped to levels not seen since 2014.

Another on-chain metric that’s not limited to whales suggests that investors are generally accumulating more Bitcoin Storm than before. Glassnode found that directions that never spent BTC but have been active for the past seven years increased markedly since 2018.

The researchers wrote:

„There are more than 500,000 #Bitcoin ‚accumulation addresses‘ with a total of 2.6M $ BTC (~14%) Accumulation addresses: have more than 2 txs [transactions] incoming, never spent BTC, were active in the last 7 years (representing lost currencies), exchanges and miners are excluded.

While both data points are recognized as upward trends, it is also important to note that they have increased steadily over the past ten years.

It is difficult to determine whether these data augur well for BTC’s short-term price cycle. However, it suggests a healthy long-term growth trend for Bitcoin.