Although Bitcoin fell below $30,000 for the first time in a month, on-chain indicators indicate that whales may be steadily increasing their holdings of BTC.
According to “The Week On-Chain” by Glassnode on July 19 report, Despite the recent continued bearish momentum, the bitcoin reserves of centralized exchanges continue to evaporate, with an average of 36,000 bitcoins (worth about $1 billion) withdrawn from the exchanges every month.
Glassnode infers that the reduction in the exchange’s bitcoin reserves indicates that large investors are moving BTC to safe storage, rather than leaving their tokens on the exchange to be sold.
Glassnode also found that the number of entities holding Bitcoin has recently increased since May, from approximately 250,000 to nearly 300,000 today. Glassnode describes “entity” as a unique cluster on the chain of associated addresses.
On-chain analysis providers pointed out that the number of “sending entities” (sale-related unique address clusters) dropped from 150,000 to 100,000, a decrease of about one-third, while “receiving entities” (related to accumulation or holding The number of related addresses has increased from 190,000 to 250,000 in the same period, an increase of approximately more than 20%.
Although it emphasized the signal to increase holdings, Glassnode pointed out that the market sentiment was severely divided and it predicted that the market may be about to experience extreme volatility:
“We have an extremely fragmented market, and volatility may be about to expand.”
It added that despite the costs incurred after the major migration, the miners are now in accumulation mode. China’s mining crackdownThe indicator of the change in miners’ net position indicates that the current monthly accumulation exceeds 3,300 BTC.