- Nearly 75% of all circulating Bitcoin has remained unmoved for over six months, indicating strong holding behaviour among investors.
- Despite Bitcoin’s 21% decline from its all-time high, large holders, or “whales,” have accumulated over 94,000 BTC in the past six weeks, suggesting confidence in future price increases.
- Market sentiment is cautious, and traders are positioning themselves carefully ahead of crucial US economic events, including the upcoming Federal Reserve meeting.
Recent on-chain data reveals that nearly three-quarters of all circulating Bitcoin has remained stationary for over six months, signalling strong holding patterns among investors.
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The data was derived from Glassnode’s HODL Waves chart, which uses blockchain data to provide a macro-level perspective of Bitcoin (BTC) distribution.
As Traders Get Shaken Out, Whales Are Loading Up
Despite the significant volatility in the broader cryptocurrency market, with Bitcoin experiencing a 21% decline from its all-time high, approximately 74% of BTC has not changed hands for most of 2024.
In other words, much of the Bitcoin supply is being held rather than actively traded, even as prices fluctuate. Furthermore, data from Santiment shows that Bitcoin whales, specifically wallets that have between 100 and 1,000 BTCs, have accumulated over 94K more coins in the past six weeks alone.
This is an interesting factor —as uncertainty has liquidated many crypto traders in the last few weeks, large whales are loading up.
Hoarding an old coin like Bitcoin usually means two things. One, investors are expecting a price increase, and two, a holding trend reduces the supply of available Bitcoin for trading, which can also impact its price.
However, on-chain analyst James Check noted that many Bitcoin short-term holders are feeling the pressure due to the recent price drops.
Right now, over 80% of Bitcoin short-term Holders are underwater, meaning their coin was acquired at a price above the current spot price. This is similar to 2018, 2019, and mid-2021 which signalled many investors were at risk of panicking, and precipitating a bearish trend.
James Check If those short-term holders panic sell their positions, we could see more downside in the crypto market.
The cryptocurrency market’s current sentiment is one of caution, as indicated by the popular Crypto Fear & Greed Index, which is now at 30, a slight increase from the previous day.
Related: Donald Trump Holds More Than 1 Million USD in Crypto As Tide Turns on Polymarket
One factor contributing to the market’s pullback is the anticipation of upcoming economic events in the United States, particularly the release of the minutes from the latest Federal Reserve meeting, scheduled for Wednesday. Traders appear to be positioning themselves cautiously ahead of these events, which could significantly impact market dynamics.
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