The market capitalization for bitcoin is $750 billion right now, and out of which, $366 billion worth bitcoin is held by long-term holders having anywhere between 100 to 10,000 bitcoins.
It is repeatedly highlighted that we are in an accumulation phase and it is a great buying opportunity for investors with a visionary mindset. That is exactly what happened in the last twenty five days. People were accumulating bitcoin left and right, and they have now purchased a total of 90,000 bitcoins.
Even though we have reached a 7-week high and 9.11 million bitcoins are held by whale addresses, it is still possible to see an even higher number in the coming weeks or months. The percentage of stablecoin supply held by whales having more than five million USD is still relatively high compared to what it was in March and April. If these whale addresses use stablecoins to accumulate more bitcoin assets, then we will most likely get confirmation and see more bullish potential in the market.
Some of the biggest bitcoin holders seem to be adding thousands of coins at lower prices, and they don’t seem to miss any buying opportunities that popped up in the last two or three weeks. Here is the second richest bitcoin holder buying 40,000 bitcoins at an average price of $36,353:
Many such long term holders are buying massive amounts of bitcoin at an average price below $40k. He added more than 6,000 bitcoins, and each coin cost him nearly $39.5k.
While this shows a significant interest from whales, there is another aspect adding to this bullish mood for bitcoin, and it is none other than- Fear & Greed Index. The retail investors or so-called “little guys” in the market are no longer handing out their share of bitcoin. The ever-expanding influence of cryptocurrency is creating more opportunities for young investors to enter the market this year.
If you see the supply distribution spread across entities having less than one BTC, you will observe a steady increase after the capitulation phase and their contribution accounts for 4.95% of the total supply
To support bulls confidence, a top executive from Fidelity summarized by saying, “In my view, it looks like the bottom is in” and uploaded a chart comparing BTC/USD with the GS Retail favourites basket.
At the same time, we have seen Grayscale come out and announce they are adding more than $2 billion to their assets like Bitcoin and Ethereum. As mentioned previously, Grayscale’s bitcoin unlock will cool off sell pressure, and investors will not be allowed to withdraw for a certain period. According to Chinese Journalist Colin Wu, Grayscale is set to unlock 23,298 bitcoin, and a major share will be released on July 18.
Adding on to the good narrative, we have also seen a survey reveal that hedge funds are expected to hold 7% of assets in crypto in the next five years. Few sources estimate that amount to be around $312 billion. It is a beautiful sight for bitcoiners to see hedge taking interest and managing their portfolios by understanding the risks and long-term potential.
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
Subscribe to get notified on latest posts.