Bitcoin’s price rally to $94,000 is driven by whale accumulation. Glassnode notes high scores on larger holders. CryptoQuant indicates substantial BTC outflows from exchanges, suggesting a long-term holding approach by investors.
Recent market movements show that Bitcoin, or BTC, is seeing a resurgence as prices recover to around $94,000 after dipping below $75,000 earlier this month. This upward trend appears to be driven by ‘whales’, or well-capitalised investors, who are dramatically increasing their investments in Bitcoin. Data from Glassnode highlights this significant accumulation by entities that hold over 10,000 BTC, suggesting that large players are firmly backing this price rally.
The statistics from Glassnode include a noteworthy Accumulation Trend Score, which stands at 0.90 for wallets containing over 10,000 BTC. This score basically tracks how actively these wallets are acquiring more coins on the blockchain. In comparison, wallets holding between 1,000 and 10,000 BTC show an accumulation score of 0.7, while smaller wallets have a trend score of 0.5, indicating they too are beginning to accumulate.
In a related point, CryptoQuant data reveals that Bitcoin outflows from exchanges have reached their highest levels in two years. When evaluated using a 100-day moving average, this points to a clear preference among investors for long-term holding rather than holding assets on exchanges. CryptoQuant analysts believe this trend may signal a steady re-accumulation of assets by investors looking to secure their holdings.
Overall, the uptick in whale activity and the significant outflow from centralized exchanges suggest that investor sentiment may be on the rise, as they shift towards a more cautious long-term holding strategy. In such a volatile market, this may be a beneficial direction for many investors, solidifying their positions amid fluctuating prices.
