According to crypto analytics firm Santiment, major Bitcoin (BTC) holders have snapped up key crypto assets since early September.
Santiment notes that Bitcoin sharks and whales, or entities holding between 10 and 10,000 BTC, have amassed a combined $1.17 billion since September 1.
The company says the accumulation pattern makes it more likely that BTC will witness a return to the $30,000 price level unless those holders start dumping their Bitcoin holdings.
Bitcoin is trading at $27,853 at the time of writing and is up almost 3% in the past 24 hours. The highest-ranked crypto asset by market cap briefly rose above $28,000 on Monday, the first time it jumped above that price level since August.
However, not everyone agrees with Santiment’s analysis. Popular Bitcoin analyst Willy Woo recently told his one million followers on the social media platform
“This is a misconception. This happened throughout the bear of 2022. There is no supply shock as synthetic BTC has added to the supply through futures markets. The market bottomed out when the futures markets gave in.
If an investor wants to buy exposure to BTC, they can now buy a futures ETF (exchange-traded fund). This does not cause a supply shock as these are just paper bets on a price increase. A hedge fund can take the other side of the bet; you have minted a new synthetic BTC. And the limit for this is infinite.”
According to Woo, the approval of a spot-based Bitcoin ETF will help “solve this problem.”
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Generated image: Midjourney