Whale wallets are accelerating Bitcoin purchases as the price hovers around $71,000, according to on-chain data released by Santiment.
Summary
- Bitcoin whales resumed their accumulation after two weeks of selling.
- BTC gained 2.4% while the S&P 500 fell 2.2% over five weeks.
- Long-term holder MVRV at -25% signals a potential accumulation area.
Wallets holding between 10 and 10,000 BTC reversed their trend from active selling to net accumulation about two weeks ago.
The reversal comes as Bitcoin maintains gains against a falling S&P 500. Over the past five weeks, the S&P 500 has fallen about 2.2%, while Bitcoin has gained 2.4%.
Gold rose 3.7% over the same period. Santiment analysts attribute this discrepancy to the lack of ties between Bitcoin and a single country’s economy.
They have also attracted the attention of holders looking beyond traditional stocks amid an ongoing geopolitical conflict involving the United States, Israel and Iran.
Whale wallets accelerate Bitcoin purchases as price hovers around $71,000
Accumulating between 10 and 10,000 BTC wallets is a closely tracked metric on Santiment’s platform.
These entities hold more than 66% of the circulating supply, and their activity tends to outweigh smaller retail positions.
Retail traders continued to buy despite the price decline, which Santiment sees as a potential counter-signal.
Currently, positive social comments on crypto platforms outnumber negative comments by a ratio of 2:1, the highest figure in six weeks.
Bitcoin MVRV Data Indicates Long-Term Stress for Holders
The 365-day market value to realized value (MVRV) for Bitcoin sits at -25%. Long-term holders are currently underwater on their positions.
Historical data from Santiment shows that buying when long-term holders are in the red has offered a better risk/reward ratio than entering when they are in profit.
Short-term holders, measured over 30 days, have an MVRV of +4.7%, increasing the possibility of short-term selling pressure from this cohort.
Funding rates on exchanges remain negative, with more traders positioned short than long term. Santiment notes that this creates conditions for a short-term squeeze if prices rise.
On March 7, whale trading volumes reached their lowest level in about a year and a half. The total number of non-zero Bitcoin wallets also reached an all-time high of 58.59 million.
