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Whales Holding Over 1,000 Bitcoin Could Fuel Another Rally, Data Suggests

Benzinga Staff
·2 min read

Bitcoin’s largest holders currently have 42.56% of the cryptocurrency’s existing supply.

What Happened: These Bitcoin whales each hold over 1,000 Bitcoin (CRYPTO: BTC) and have the power to influence the digital asset’s next rally.

According to data from on-chain analytics platform Santiment, the last time these whales held over 43% of the coin’s supply was on Feb. 8, which coincided with Bitcoin’s 54-week high.

These holders were believed to have fuelled the asset’s rally to its all-time high of $58,354 on Feb. 22.

Why It Matters: According to analysts from Santiment, whales bought up supply 12 days before Bitcoin’s rally to its all-time high. Similarly, a drop in the amount of supply that whales held foreshadowed the drop in Bitcoin’s price.

Data suggests that if these whales hold over 43% once again, it may indicate that they are looking to fuel another rally.

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According to the analysts, the amount of holders had dropped off before the previous all-time high and during the correction.

“There is generally a bit of lead time in the direction of whale accumulations and dumps, which is why it's such a powerful leading indicator," they said.

What Else: Another bullish case for Bitcoin is the fact that its implied volatility has retraced back to its levels in early January.

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Implied volatility usually increases in bearish markets and decreases when the market is bullish, suggesting that another rally could be underway.

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