Bitcoin (BTC) accumulation has been gradually increasing in recent weeks and months, and as MKT247 noted, the number of so-called accumulation wallets recently reached an all-time high.
However, when examining Bitcoin on-chain accumulation patterns in relation to the BTC price level, it is clear that there is a disparity between the number of holders with less than 1 BTC (small fish) and those with 1,000-10,000 BTC (whales). Notably, the shift in Bitcoin holdings since October 2020 has seen a significant increase in the number of smaller holders while whales are distributing, as highlighted by on-chain data platform Ecoinmetrics on March 12.
Bitcoin whales and small fish… two different worlds right now. The small fish are accumulating like there is no tomorrow while the whales are distributing. Without the whales, I doubt there is enough momentum for a sustained trend upward.
Interestingly, with such a disparity, the platform has stated that without the whales acquiring and holding, it is unclear whether the flagship digital asset would have enough impetus to continue its upward trajectory.
Bitcoin accumulating
As previously stated, accumulation wallets have reached a new all-time high, as revealed on March 1 by expert internet entrepreneur Lex Moskovski on Twitter, citing data from on-chain market analytics aggregator Glassnode.
The term "accumulation wallet" refers to Bitcoin wallets that have had recent activity but have not spent any BTC, with the Bitcoin accumulation beginning in late February.
Glassnode said the spike was caused by a major WBTC custodian generating new addresses and transferring reserves into them, rather than whale accumulation, which is generally regarded as a huge buy signal in the cryptocurrency market, with updated information.
According to CoinMarketCap data, Bitcoin is trading at $39,192.47 at the time of publication, up 0.29 percent and 0.38 percent in the last week.
BTC 7-day price chart. Source: CoinMarketCap
Bitcoin currently has a market capitalization of $743 billion and has a market share of 42.5 percent.
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