According to chain data published by Santiment, whale wallets are increasing Bitcoin purchases as the price is around $71,000.
Conclusion
- Bitcoin whales rallied again after two weeks of selling.
- BTC is up 2.4%, while the S&P 500 is down 2.2% over the five-week period.
- The long-term holder of MVRV at -25% indicates a potential accumulation zone.
Wallets holding between 10 and 10,000 BTC returned to net accumulation about two weeks before the active selloff.
The reversal comes as Bitcoin gains against a weakening S&P 500. Over the past five weeks, the S&P 500 is down about 2.2%, while Bitcoin is up 2.4%.
The price of gold increased by 3.7% during the same period. Santiment analysts attribute this discrepancy to Bitcoin’s lack of connection with any country’s economy.
They have also attracted the attention of traditional shareholders amid the ongoing geopolitical conflict between the US, Israel and Iran.
Shark wallets are ramping up Bitcoin buying as the price hovers around $71k
Accumulating between 10-10,000 BTC wallets is a benchmark on the Santiment platform.
These businesses account for more than 66% of the turnover and their activity has more weight than smaller retail positions.
Retailers continued to buy through the decline, which Sentiment notes as a potential downside signal.
Currently, positive social commentary on crypto platforms outnumbers negative commentary by a ratio of 2:1, the highest reading in six weeks.
Bitcoin MVRV data points to the long-term stress of the holder
The 365-day Market Value to Realized Value (MVRV) reading for Bitcoin is sitting at -25%. Long-term holders are currently underwater in their positions.
Santiment’s historical data shows that buying when long-term holders are in the red has provided a better risk adjustment than entering when they are profitable.
Short-term holders, measured over 30 days, have an MVRV of +4.7%, which increases the possibility of near-term selling pressure for this group.
Funding rates on the stock market remain negative and more traders are short than long. Sentiment notes that this creates conditions for short-squeezing if prices rise.
The volume of whale transactions on March 7 reached a minimum of about 1.5 years. The total number of Bitcoin wallets also reached an all-time high of 58.59 million.
