The cryptocurrency market has witnessed a significant development as wallets holding 10,000 Bitcoin (BTC) or more have reached their peak in terms of coin accumulation in the last six years. This data, provided by Santiment, indicates that these substantial wallets now hold more than 3.19 million coins, a milestone that was last seen in November 2018.
In the midst of the market’s volatility, these large BTC wallets have heavily benefited. Over the past six weeks, these wallets have added a remarkable 212,450 BTC to their holdings, representing an increase of 1.05% of the total Bitcoin supply. Santiment’s analysis suggests that these significant BTC addresses are primarily comprised of exchange liquidity providers, playing a vital role in maintaining Bitcoin’s liquidity across different trading platforms.
Bitcoin’s price experienced fluctuations recently, dropping to $53,500 per coin on Friday, marking a low not seen since February. While the price has slightly recovered, currently trading at $57,932.57, down 3.4% from the previous levels, the market sentiment remains uncertain. Following a surge to an all-time high of over $73,700 in March, Bitcoin’s price has been consolidating within a range of $60,000 to $70,000, leading to investor apathy and boredom.
The current market conditions have resulted in widespread indecision, with the market unable to establish a strong trend in either direction. According to Glassnode, the True Market Mean indicates a Bitcoin value of $50,000, representing the average cost basis per active investor. This level is crucial for the market to maintain above if the macro bull market is expected to continue.
The surge in accumulation of Bitcoin by large wallets and the ongoing market volatility indicate a complex landscape for investors. With price fluctuations, investor sentiment, and market indecision at play, it is essential for investors to closely monitor these developments and adapt their strategies accordingly. As the cryptocurrency market continues to evolve, it is crucial to stay informed and make well-informed decisions to navigate these uncertain times effectively.