On-chain data shows that the bitcoin shark cohort has engaged in its largest accumulation wave over the past month since 2012.
bitcoin sharks have bought over 268,000 btc in the last month
As analyst James Van Straten explains in a new twitter.com/jvs_btc/status/1773624811098378326″ target=”_blank” rel=”noopener nofollow”>mail On x, bitcoin entities holding between 100 and 1000 btc have made significant net buying moves over the last month.
An “entity” here refers to a collection of addresses owned by the same investor as determined through analysis by on-chain analytics firm Glassnode.
Entities holding between 100 and 1000 btc are popularly known as “sharks.” At the asset's current exchange rate, this range becomes around $6.93 million to $69.3 million.
Therefore, investors holding these amounts are clearly quite large, meaning they should have some importance to the market as a whole. However, these sharks are still smaller and less influential than whales, which typically occupy the range above 1,000 btc.
Given the relevance of sharks, it is naturally worth monitoring their behavior. One way to track this behavior is through the “net change in position” of the cohort.
This on-chain metric tracks the net amount of supply that entered or left the wallets of entities belonging to the Shark group over the last month.
The following graph shows the trend of this indicator throughout the entire history of the cryptocurrency.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Sharks-Show-Biggest-Monthly-Buying-Spree-Since-2012.jpeg" alt="bitcoin Sharks” width=”1800″ height=”1013″/>
The value of the indicator appears to have been quite high in recent days | Source: twitter.com/jvs_btc/status/1773624811098378326/photo/1" target="_blank" rel="noopener nofollow">@jvs_btc on x
As the chart above shows, bitcoin's net shark position change has been at very positive levels recently. This would imply that these large investors have been adding a net amount of coins to their wallets.
The sharks have made net purchases worth around 268,441 btc in the last 30 days, which is currently worth almost $18.6 billion. This is a staggering amount and is the largest accumulation these holders have made since 2012.
Back then, the price of btc was a small fraction of what it is today, so the current shark buildup would be the most impressive in the asset's history based on the sheer amount of capital involved.
With such a high degree of accumulation, it is no surprise that the past month has been positive for bitcoin, where its price has reached new all-time highs.
Another positive development in the market recently is perhaps the outflows that cryptocurrency exchange Coinbase has seen, as Straten noted in another x post.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/1711818723_868_Bitcoin-Sharks-Show-Biggest-Monthly-Buying-Spree-Since-2012.jpeg" alt="bitcoin Outflows Coinbase” width=”1800″ height=”1013″/>
The trend in the netflows for Coinbase over the past year | Source: twitter.com/jvs_btc/status/1773655084733202596/photo/1" target="_blank" rel="noopener nofollow">@jvs_btc on x
According to the analyst, $1.1 billion of assets were withdrawn from the platform's portfolios yesterday, the third largest net outflow this year, with the top three outflows occurring in the last month.
Currency outflows may be a bullish sign for the cryptocurrency as they suggest that investors prefer to self-custody, possibly HODLing their coins for extended periods.
btc Price
bitcoin price has stagnated a bit in recent days as it has not been able to choose any direction. Currently, btc is trading at around $69,400.
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Looks like the price of the asset has been consolidating recently | Source: BTCUSD on TradingView
Featured image by Marcelo Cidrack on Unsplash.com, Glassnode.com, TradingView.com chart
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