According to a report from CoinDesk, Bitcoin (BTC) whales, or large holders, increased their holdings of Bitcoin at the fastest pace in years in July, taking advantage of the price fluctuations.
Data tracked by blockchain analysis company IntoTheBlock and charting software TradingView showed that large holders, defined as addresses holding at least 0.1% of the circulating supply of BTC, accumulated over 84,000 Bitcoin in July, worth approximately $5.4 billion at the current market price. In terms of BTC quantity, this is the largest monthly accumulation since October 2014.
The data also revealed that these large holders bought Bitcoin at lower prices when the price dropped below $55,000 in early July, and paused their accumulation when the price rose to $69,000. During two price corrections in late July, the net inflow of Bitcoin from long-term holders increased.
This strategic accumulation may indicate that these holders believe the consolidation phase between $50,000 and $70,000 will eventually end with a bullish breakout, continuing the initial rebound from $16,000.
Some analysts have a positive outlook on the price prospects of Bitcoin. Jag Kooner, Head of Derivatives at cryptocurrency exchange Bitfinex, stated:
“The diminishing impact of negative news has strengthened market confidence. Bullish sentiment is also being fueled by the inflow of funds into stablecoins. According to data from digital asset data company CCData, the total market capitalization of stablecoins rose by 2.11% to $164 billion in July, the highest monthly increase since April. This indicates new capital inflows into the market and is reflected in the positive price trend in July.”
