Data from the chain shows that major investors bought into the Bitcoin network while the market was in panic due to the latest crash.
Bitcoin Large Holders Netflow has been positive lately
This is evident from data from the market information platform InTheBlokthe largest wallets on the Bitcoin blockchain have been generating some large net inflows lately.
The on-chain indicator of interest here is the “Large holders Netflow”, which tracks the net amount of cryptocurrency entering or leaving the wallets associated with the ‘Large Holders’.
IntoTheBlock defines large holders as investors who own at least 0.1% of the entire circulating supply of the asset. There are over 19.7 million BTC tokens in circulation, so this figure would correspond to approximately 19,700 BTC.
This stack is worth more than $1.2 billion at the cryptocurrency’s current exchange rate. So it is clear that these large holders are indeed quite large and can therefore be assumed to have some degree of influence on the market.
As such, it may be worth keeping an eye on their behavior because even if it is not directly reflective of the price of the asset, it can still contain information about the sentiment among these giant entities.
Here is a chart showing the trend in Bitcoin Large Holders Netflow over the past month:
The value of the metric appears to have been positive in recent days | Source: IntoTheBlock on X
As shown in the chart above, Bitcoin Large Holders Netflow has been largely above zero in recent weeks, indicating that these investors have received net deposits into their wallets.
This accumulation of the whales has occurred while the cryptocurrency has been going through a period of bearish momentum. This bearish trend culminated in a Crash for the coin yesterday, with the price falling below $60,000.
Major bondholders took advantage of this opportunity after posting their strongest net inflows since late May. These investors bought a net amount of 7,130 BTC during the dip yesterday, which is currently worth almost $439 million.
The strong buying would obviously imply that the whales believe these recent lows provide a profitable window for further accumulation of the cryptocurrency, regardless of the amount of FUD circulating in the broader market.
Another potential bullish development has also occurred at the same time for Bitcoin, as Lucas, head of research at IntoTheBlock, noted in an after. It seems the exchanges have been widely received USD coin (USDC) influx yesterday.
Looks like the value of the indicator has been just registered a positive spike | Source: IntoTheBlock on X
Investors generally transfer their coins to these central entities when they want to trade them, so this net inflow of USDC would imply a huge amount of money to exchange the stablecoin, possibly for other cryptocurrencies such as Bitcoin.
So, this net USDC inflow of $228 million on the exchanges could increase buying pressure for BTC.
BTC price
At the time of writing, Bitcoin is hovering around $61,500, down over 4% in the past seven days.
The price of the asset appears to have plummeted over the past two days | Source: BTCUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com