On-chain data shows the number of Bitcoin whales with 1k to 10k BTC in their wallets have been increasing lately, suggesting that investors have been accumulating the crypto.
Bitcoin UTXO Count Value Bands Show Signs Of Accumulation In Market
As pointed out by an analyst in a CryptoQuant post, there seems to be accumulation going in the BTC market in recent days.
The relevant indicator here is the “UTXO Count Value Bands,” which basically tells us what percentage of Bitcoin wallets fall into which of the different value bands.
Here, the “value bands” refer to the number of coins held in the wallets. For example, the 100-1k BTC group includes all addresses that are holding between a hundred and a thousand coins.
The value band of importance in the current discussion is the 1k-10k group. Here is a chart that shows the trend in the UTXO Count for this value band over the past couple of years:
The value of the metric seems to have been on the rise during recent weeks | Source: CryptoQuant
As you can see in the above graph, the percentage of Bitcoin wallets with balance in the 1k to 10k BTC range had been going down between June and September.
Over the past month, however, the trend seems to have changed and the indicator has now caught some upwards momentum.
This means that whales have been actively accumulating recently and filling up their wallets enough to get inside this value band.
The chart also highlights the pattern in the metric during the buildup to the early 2021 bull and then over the run itself.
It looks like the Bitcoin UTXO Count for this value band started going up in the months leading up to the bull run, and hit a high peak value around the beginning of it.
Shortly after that, however, as the bull started hitting its highs the metric started going down, suggesting that whales were dumping their coins.
If this past trend is anything to go by, the latest upwards trajectory in the indicator could prove to be bullish for the value of Bitcoin.
At the time of writing, Bitcoin’s price floats around $20.4k, down 1% in the last week. Over the past month, the crypto has gained 6% in value.
The below chart shows the trend in the price of the coin over the last five days.
The value of the crypto has been gradually going downhill over the last few days | Source: BTCUSD on TradingView
Featured image from Jaunathan Gagnon on Unsplash.com, charts from inew.news, CryptoQuant.com