Bitcoin ($BTC) whales have been on a massive accumulation frenzy over the last few days, adding up as much as 46,173 BTC to their wallets since September 27 in a move that “has been a rarity in 2022.”
According to on-chain analytics firm Santiment, BTC whales have been selling their holdings in leading stablecoin USDT to accumulate more BTC, to the point that addresses holding between 100 and 10,000 BTC have added 46,173 coins, worth around $930 million at the time of writing.
The accumulation trend comes shortly after the firm reported that BTC being held on cryptocurrency trading platforms has dropped to a four-year low, with nearly $700 million worth of the flagship cryptocurrency moving off of trading platforms in a single day.
According to Santiment, on September 30 a whopping 34,723 BTC moved off of exchanges, indicating “what may be a hint of trader confidence heading into Q4.” Per the firm, the last time such a large amount of BTC left cryptocurrency exchanges in a single day was on June 17, ahead of a 22% price rise over the following four weeks.
Cryptocurrency traders follow BTC’s supply on exchanges closely, as a reduced supply on trading platforms means that if demand picks up, the cryptocurrency’s price is likely going to quickly move up as well.
A lower supply of BTC on exchanges also reduces the risks of a significant sell-off occurring, as there’s less supply being sold on the market, while demand is unlikely going to dissolve enough to see a significant drop occur.
According to Santiment, Bitcoin’s supply on exchanges has been steadily falling, and now less than 9% of the cryptocurrency’s circulating supply is on these platforms, the lowest value seen since 2018.
As CryptoGlobe reported, the host of the InvestAnswers YouTube channel has recently told his over 440,000 subscribers on the video-sharing platform that October is a historically bullish month for BTC, which to him means that the cryptocurrency could trade at $25,000 to $260,000 over the next four weeks.
Some analysts are even more bullish on the cryptocurrency. A former hedge fund manager has estimated that BTC will trade at $12.5 million per coin in a decade after the collapse of the U.S. dollar.
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