Data from the Bitcoin ($BTC) blockchain has shown that there has recently been a surge in acquisitions by the so-called “whales” of the cryptocurrency world. These deep-pocketed entities, known for holding between 1,000 and 10,000 Bitcoin, have amassed an additional $2.32 billion worth of the crypto behemoth in a period just over a month.
According to blockchain analytics firm Santiment the whales, who hold between $27 million and $270 million worth of the leading cryptocurrency, have accumulated large amounts of BTC in other periods in the past.
A similar accumulation trend from BTC whales earlier this year, according to Santiment, was followed by a 34% rise in the price of the digital currency. Whales accumulating tokens can both signal confidence to the market and help the cryptocurrency’s price rise by helping reduce the supply available on exchanges.
Further amplifying the bullish signals, renowned crypto trader Ali highlighted that in a single day, over 20,000 Bitcoin, equating to more than $546 million, were pulled from the wallets of centralized cryptocurrency exchanges.
When BTC is moved away from exchanges and moved to wallets custodying their own funds, it reduces the supply that’s readily available on the market. This reduces liquidity, which could lead to a price increase if demand remains strong or grows because buyers must compete for fewer available Bitcoins.
This scarcity effect can push prices up as buyers are willing to pay a premium to secure the limited Bitcoin available, ultimately driving the market value of the cryptocurrency higher.
As CryptoGlobe reported, Bitcoin adoption has kept on rising over the past few months with the rise of the total number of unique addresses holding at least one BTC reaching a new high above the one million mark.
The new record was set on May 12 and shows there’s growing interest in the flagship cryptocurrency as accumulation is ongoing. At the time of writing the number of addresses holding one whole BTC, often referred to as “wholecoiner” addresses, has grown to 1,000,527. On February 2, the figure crossed the 800,000 mark.
Featured Image via Pixabay