The on-chain analytics firm Santiment has explained how this Bitcoin indicator has been one of the top leading indicators in the cryptocurrency market.
Bitcoin Holdings of Investors with At Least 10 BTC May Correlate with Price
In a recent post on X, Santiment highlighted a metric that has historically been one of the leading indicators in the crypto sector: the total supply held by Bitcoin investors with at least 10 BTC in their wallets.
With the current exchange rate, this threshold equates to around $683,000, indicating that these investors are significantly larger than typical retail holders. This group includes key players such as sharks and whales, whose actions can heavily influence the market.
While not all members of the 10+ BTC group are large investors, the trends in their holdings can still provide insights into the behavior of these influential entities.
The chart below shows the trend in the combined holdings of investors with at least 10 BTC over the past few years:
As shown, the Bitcoin supply held by this group has been increasing recently, indicating accumulation by large holders.
Santiment notes a historical pattern between the price of Bitcoin and the behavior of these investors. “When they accumulate, cryptocurrencies rise. When they dump, extended bear markets come,” the analytics firm explains.
This trend is evident in the chart. The supply held by this cohort began rising in October 2019 and continued through the bull run of 2021. In February 2022, these investors’ behavior shifted, with their combined holdings starting to decline, leading into the bear market.
After the FTX crash in November 2022, the decline halted, and the holdings of these investors moved sideways throughout 2023. At the end of the year, the trend shifted upward, likely due to the anticipated approval of a spot exchange-traded fund (ETF) in January. This accumulation continued post-approval, culminating in a rally to a new all-time high (ATH).
Despite recent struggles for Bitcoin, the trend in this indicator remains positive. If historical patterns hold, more bullish price action could be ahead for the asset.
BTC Price
Bitcoin has recently returned to sideways movement, with its price currently trading around $68,300.