On-chain analytics startup IntoTheBlock reports a significant milestone reached by Bitcoin whales. The amount of Bitcoin held by addresses with more than 1,000 BTC has reached its highest in 2023.
According to IntoTheBlock, the balance held by addresses with more than 1,000 BTC reached a new yearly high this week.
The amount of Bitcoin held by addresses with over 1,000 BTC hit a new yearly high this week!
Following the collapse of Alameda and Genesis, the amount of Bitcoin held by these large holders plummeted. However, it has grown throughout 2023, reaching a total of 7.67M BTC this week pic.twitter.com/cjiCFfAMvU
— IntoTheBlock (@intotheblock) November 17, 2023
Following the collapse of FTX-related Alameda Research and Genesis, the amount of Bitcoin held by addresses with more than 1,000 BTC fell precipitously.
Entities of this size have been steadily increasing since 2023, with their holdings reaching 7.67 million BTC worth $275 billion this week.
According to IntoTheBlock, the size of these holdings indicates that large Bitcoin institutions are seeing increased demand and are in a strong position.
In addition, the amount of Bitcoin held by long-term investors reached fresh all-time highs this week.
Addresses that have held Bitcoin for more than a year have historically been a predictor of Bitcoin cycle advancement. This is because hodlers tend to raise their Bitcoin holdings during bear markets and at the start of bull markets and lower them near prior all-time highs.
According to IntoTheBlock, the rising balance of hodlers may indicate that investors, in general, expect Bitcoin to climb.
Bitcoin neared $38,000 on Thursday before falling back and trading marginally up in the last 24 hours at $36,459. In a blog post, IntoTheBlock pointed out that the futures market data might suggest that U.S. entities have been among the key drivers of Bitcoin’s climb.
Deribit data suggests there is a preponderance of bullish options bets on Bitcoin, reaching $40,000 and even $45,000 by the end of December.
Given that the traders selling the call options are ready to accept the opposite side of the bet, $40,000 might become a critical test point for Bitcoin’s advance.
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