On-Chain Data Suggests Bullish Combination for Bitcoin as Sharks and Whales Accumulate Bitcoin and Tether
According to on-chain data analysis firm Santiment, both Bitcoin and Tether (USDT) have seen accumulation by sharks and whales recently. The relevant metric of interest here is the “supply distribution,” which tracks the total amount of a particular asset held by different groups of holders.
In the current context, sharks and whales are the entities of interest. For Bitcoin, the total supply of these assets can be defined in the range of 10 to 10,000 BTC, while for Tether, it generally lies between 100,000 and 10 million USDT.
Sharks and whales are influential entities in the industry due to their holdings, but their role differs depending on whether they hold the volatile BTC or the stablecoin USDT.
The following chart shows how the supplies of sharks and whales of both cryptocurrencies have changed in recent months:
[Image: Bitcoin & Tether Sharks & Whales]Both metrics seem to have witnessed an increase in recent days | Source: Santiment on X
The chart reveals that Bitcoin sharks and whales have participated in some accumulation recently, increasing their holdings to 13.03 million BTC, a new high for this year.
Interestingly, Tether sharks and whales have also expanded their holdings during this accumulation. The value of the metric has reached a six-week high of 15.03 billion USDT in this case.
The significance of the trend in BTC shark and whale supply seems clear: These huge entities are buying right now, which is likely to be bullish for the price. But what about the pattern exhibited by the USDT cohort?
In general, an investor can buy a stablecoin like USDT to avoid the volatility of assets like Bitcoin. Once these holders feel that prices are right to jump back into the volatile side of the sector, they exchange their fiat-backed tokens for the desired coin.
This shift can naturally create buying pressure on the cryptocurrency they are swapping into. For this reason, the supply of stablecoins can be considered as a measure of the available potential purchasing power for Bitcoin and other assets in the market.
Thus, the recent Tether accumulation suggests that sharks and whales have increased their buying capacity. Sometimes, peaks in this indicator come at the expense of the corresponding BTC metric, as these holders convert their reserves. While such a scenario increases purchasing power in the future, it comes at the cost of a BTC sell-off.
However, in the current case, both of these indicators have shown an upward trend simultaneously, meaning that not only have sharks and whales participated in some Bitcoin buying, but also the capital reserves these major holders may invest in the asset form of Tether have also increased. “This is generally a bullish combination,” explains Santiment.
BTC Price
Bitcoin previously surged above the $27,000 mark, but the asset has retraced in the past few hours and is now trading around the $26,700 mark.
[Image: Bitcoin Price Chart]BTC has already retraced a portion of its recovery | Source: BTCUSD on TradingView. Featured Image from Shutterstock.com, Charts from TradingView.com, Santiment.net
