Bitcoin supply held by THIS group crosses 4 mln: Impact on BTC?

• BTC whales now hold 20% of the BTC supply.
• BTC has risen to around $55,000 in the last 24 hours.

Bitcoin [BTC] accumulation by certain addresses has notably increased in recent months. The accumulation is significantly higher when comparing the volume held by these addresses to six months ago.

A more positive sign emerges when these increasing holdings are compared with the exchange reserves over the same period. 

Bitcoin whales accumulate an extra 5%

Recent data from IntoTheBlock showed that Bitcoin addresses holding 100-1,000 BTC have significantly increased their accumulation.

These addresses now hold over 4 million BTC, representing over 20% of the total Bitcoin supply. 

This notable increase reflected a 5% rise in holdings compared to six months ago. At that time, these whale addresses held around 3.82 million BTC.

This growth in accumulation underscores the growing confidence in Bitcoin’s long-term potential, particularly amid volatile market conditions.

The substantial increase in holdings by these addresses suggested that larger investors, or whales, are positioning themselves for future gains.

Bitcoin’s exchange reserve continues to deplete

The recent accumulation of Bitcoin by large addresses is indeed a bullish sign, and the current trend of the Bitcoin exchange reserve further reinforces this positive outlook. 

According to an analysis of the exchange reserve data on CryptoQuant, Bitcoin reserves on exchanges have been in consecutive decline.

As of this writing, the exchange reserve stood at around 2.68 million BTC, a decrease from approximately 2.93 million BTC six months ago.

Source: CryptoQuant

This consistent decline in the exchange reserve, paired with the growth in BTC accumulation by addresses holding 100-1,000 BTC, indicates that many holders have chosen to hold onto their BTC rather than sell or trade it.

By moving their Bitcoin off exchanges, these holders are signaling a long-term hold strategy, often suggesting growing confidence in future price appreciation.

The shrinking exchange reserve combined with the increased accumulation suggests a tightening supply, potentially leading to upward price pressure.

BTC’s price rises 

In the latest trading session, Bitcoin saw an increase of over 1%, pushing its price to around $54,881, according to an analysis of its daily price chart.

As of this writing, Bitcoin has risen further to approximately $55,300, with a slight increase of less than 1%.

Source: TradingView

Read Bitcoin’s [BTC] Price Prediction 2024-25

Looking back at the price trend from when the accumulation phase began, BTC was trading above $60,000. This means that early accumulators are currently holding their assets at a loss.

However, if BTC can break above the $65,000 price range, those early accumulators would shift into significant profit territory.