Renowned on-chain analytics company Santiment has highlighted a crucial Bitcoin statistic that has long been among the most important leading indicator available in the bitcoin space.
In a recent post on their platform, Santiment explored the importance of a certain statistic that has repeatedly shown to be a vital indicator in the field. This statistic is based on the whole supply kept in wallets of Bitcoin investors minimum of 10 BTC.
This barrier, which corresponds to roughly $683,000 at the present worth of the bitcoin, indicates ownership by someone outside of the usual range of retail investors.
Among the notable entities belonging within this category are the powerful cohorts sometimes known as “sharks” and “whales,” whose activities significantly affect market dynamics. Though not all of these significant investors, changes in the 10+ BTC group’s holdings often reflect the actions of such influential players.
Bitcoin, Recent Research And Market Trends
Recent research of the combined holdings in this range shows a clear increase, implying an accumulating trend among significant investors. Santiment emphasizes a historical relationship between the actions of this segment’s investors and later swings in bitcoin prices. The analytics company claims that while major sell-offs usually precede protracted bear markets, periods of accumulation by these investors usually correspond with positive market trends.
Graphical depiction of the trend in holdings among investors with balances within the designated range during recent years helps to show this observed pattern. Especially, starting from October 2019, a rising trend in holdings among this group was noted that matched the following bull market of 2021.
However, these Bitcoin investors displayed a behavior change in February 2022 that suggested the beginning of a bad market phase: their combined holdings fell. This falling trend persisted until the aftermath of the FTX crisis in November 2022, where holdings steadied through sideways movement in 2023.
Towards the conclusion of 2023, a recovery in the metric’s upward trend was observed attributed to increasing accumulation activity probably driven by expectation about the forthcoming approval of a spot exchange-traded fund (ETF) in January. This buying force persisted post-approval until a surge brought Bitcoin to hitherto unheard-of all-time highs.
Though Bitcoin has lately faced challenges, including a period of sideways movement with the present price hanging around $68,300, the general trend in this crucial indicator stays the same. Based on prior patterns, Santiment claims that this continuity in the indicator’s path leads to likely positive price movements for the asset.
