- In recent days, the accumulation of BTC by major investors has increased.
- This has happened despite the decline in the price of the currency and market volatility.
Bitcoin [BTC] major holders have been actively accumulating the coin despite the recent correction in the coin’s price after it traded at a new all-time high of $69,170 on March 5, Santiment noted in a message on X (formerly Twitter).
According to the on-chain data provider, the number of these large holder addresses, also known as whale and shark accounts, has increased over the past week. For example, the number of addresses holding between 100 and 1000 BTC has increased by 1% over the past nine days.
Likewise, the number of addresses holding between 10,000 and 100,000 BTC increased by 4% over the same period.
Despite increased participation in whales and sharks, the number of BTC wallets with non-zero balances is decreasing. A non-zero wallet is an address that contains even a small amount of a specific cryptocurrency.
Short-term holders continue to jeopardize BTC’s chances
According to Santiment, the decline in BTC non-zero wallets is “mainly due to the capitulation of retail traders.” This suggests that retail BTC traders are exiting their markets for a variety of reasons, such as profit taking, loss mitigation, or simply a lack of confidence in the coin’s short-term prospects.
AMBCrypto before reported that the recent spike in the price of BTC resulted in an increase in the number of short-term investors holding the leading coin.
As highlighted in the report, this trend is causing BTC to decline because much of its supply is controlled by this investor cohort, made up of traders willing to sell their coins for profit with every slight change in market sentiment.
The drop in open interest in BTC futures in recent days confirmed the departure of these investors. According to Mint glass’ According to data, BTC open interest has fallen 3% since March 5.
When the open interest of an asset falls in this manner, it suggests that traders are exiting their positions without opening new ones, and liquidity inflows into the market are witnessing an overall decline.
Read Bitcoin’s [BTC] Price forecast 2024-2025
However, according to Santiment, despite the decline in the number of non-zero Bitcoin wallets and market volatility, the presence of actively participating sharks and whales indicates a bullish outlook.
This indicates that despite short-term fluctuations in the value of BTC and small traders “dumping” the coin for profits, there is still strong support from the larger holders.