Bitcoin (BTC) whales continued to accumulate BTC despite the relative price stability of the largest cryptocurrency in the world. According to the on-chain analyst Will Clemente, whales are increasing their Bitcoin holdings. This should be something considered bullish for Bitcoin and the entire crypto market.
Whales Continue Accumulating Bitcoin
Large crypto holders continue to accumulate BTC. According to his newsletter sent to over 25,000 individuals around the world, the number of users on the Bitcoin network is close to a new all-time high.
He shared a chart in which he showed the net growth of users that are entering the Bitcoin network. As he explained, there are 50,000 new entities coming on-chain every single day. This is one of the largest growth rates in history.
Bitcoin making all-time highs in new users coming on the network. pic.twitter.com/bMHkaQEt1g
— William Clemente III (@WClementeIII) July 8, 2021
Furthermore, he shows that large investors are also accumulating massively large amounts of Bitcoin. As he explained, whales have purchased $2.2 billion worth of BTC in recent weeks. The trend could continue in the future. Will Clemente has also explained that retail investors have also invested heavily in Bitcoin recently.
On the matter, he stated:
“Retail has been buying heavily for weeks now, but we finally got the uptick in whales that we were waiting for. There were 17 new whales on the blockchain this week, while at the same time, the overall holdings of whales increased by 65,429 BTC.”
This situation could be very bullish for Bitcoin if the trend continues for several weeks. In just a month, these whales could eventually purchase 1% of the total supply of Bitcoin. Let’s remember that there will only be 21 million BTC and that only 900 BTC are created every single day.
Furthermore, Clemente continues to closely follow the outflow and inflow of BTC on exchanges. This could be a good indicator to predict short-term volatility in the markets. A lower number of BTC in exchanges could be related to a higher price for the virtual currency as there are fewer BTC available for users to purchase.
As the analyst explains, entities have a very low history of selling. Additionally, larger investors continue to absorb more coins from the market from speculative traders. As he mentioned, the buying pressure is also generating a situation in which there could be a “supply shock.” A supply shock event could also be bullish for Bitcoin in price terms.
“Given no capitulation event, in my humble opinion, it is a matter of “when” the re-accumulation process will be finished rather than “if”,” he said.