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This Bitcoin Metric Is “One of the Leading Crypto Indicators”: Santiment — TradingView News
On-chain analytics company Santiment explained how this Bitcoin indicator has been one of the leading leading indicators in the cryptocurrency market.
Bitcoin investor holdings with at least 10 BTC may be price correlated
In a new article on X, Santiment discussed a metric that has historically been one of the leading industry metrics. The metric in question is the total amount of supply held by Bitcoin investors with at least 10 BTC in their wallet.
At the current cryptocurrency exchange rate, this threshold is equivalent to approximately $683,000. As such, investors holding sums of this magnitude or more would be larger than typical retail holders.
Key groups such as sharks and whales fall into this range. These cohorts are generally considered influential beings, so their behavior is worth monitoring.
Even though the 10+ BTC group would not only include these large investors, the trend of its holdings would at least partly summarize what these key holders would do.
Now here’s a chart that shows the trend in the combined holdings of investors with balances in this range over the past few years:
NewsBTC
As the chart above shows, the supply of Bitcoin held by investors belonging to this group has increased recently, suggesting that accumulation has occurred among large holders.
According to Santiment, there has historically been a trend between price and investor behavior within this range. “When they accumulate, cryptocurrencies rise. When they empty, prolonged bear markets occur,” explains the analytics company.
Examples of this trend can also be seen in the chart. The supply held by this cohort began increasing in October 2019 and continued to rise throughout the ensuing bull run in 2021.
By February 2022, however, the behavior of these Bitcoin investors changed, as their combined holdings began to decline instead. This led to the bear market.
The decline stopped after the FTX crash in November 2022 and these investors’ holdings trended sideways in 2023. At the end of the year, another change finally occurred as the measure took an increasing trend.
This accumulation likely started due to the impending approval of spot exchange-traded funds (ETFs) in January. These investors also continued this buying pressure after the approval, which resulted in the rally to the new all-time high (ATH).
Despite the difficulties Bitcoin has faced recently, the indicator’s trend has not reversed. As such, more bullish price action could be ahead for the asset, if the historical trend is to continue.
BTC Price
Bitcoin recently fell back into a sideways movement, with its price currently trading around $68,300.