This Group Accumulated 154,560 Bitcoins in Five Months, Will BTC Price Increase in the Future?
Bitcoin (BTC), the world’s largest cryptocurrency, is flirting around the $68,000 levels but it is failing to provide enough momentum to start a fresh rally above $70,000. While market demand for Bitcoin futures has increased, this demand has not yet been reflected in the spot BTC price. However, there has been a quiet accumulation for Bitcoin over the last few months.
More than 150,000 Bitcoins Collected in just Five Months
According to on-chain data provided by Santiment, over 150 thousand BTC were added to Bitcoin wallets holding more than 10 BTC in the last five months.
On-chain data provider Santiment has noted a significant trend in the cryptocurrency market linked to wallets holding at least 10 Bitcoins. According to Santiment, these wallets serve as leading indicators for market movements. Historically, when these wallets accumulate Bitcoin the overall cryptocurrency market tends to rise. Conversely, when they sell off their assets, this often signals the beginning of expanding bear markets.
Courtesy: Santiment
Thus, as seen in the image above, the Bitcoin price started to rise after a similar accumulation in October 2019. Therefore, it is very likely that the Bitcoin price will follow a bullish trend in the next year or two.
According to BitQuant, Bitcoin is currently mirroring its February-March trading pattern and is preparing for a significant move that could begin at any time. If successful, we could see the BTC price rise to $95,000 in the coming months.
Courtesy: BitQuant
BTC Price Doubled in One Year
In a recent post on microblogging platform X (formerly known as Twitter), renowned cryptocurrency analyst Cryptorphic highlighted that Bitcoin has never experienced a price correction in the year following the halving event. He emphasizes that halvings are “major events” for cryptocurrency.
The Bitcoin halving event reduces the rewards miners receive per block by half, thus halving the new supply entering the market. Cryptorphic’s analysis revealed an interesting historical trend: Following the first halving in 2012, the BTC price increased by a staggering 8,300%. The second halving in 2016 saw a more modest but still impressive increase of 288%. The most recent halving in 2020 triggered a 540% increase in one year.
Considering these models, Cryptorphic suggested that the Bitcoin price could increase by 127% from its current level after the halving, potentially reaching between $115,000 and $156,000.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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