Whale wallets increase buying of Bitcoin as the price hovers around $71,000, according to on-chain data published by Santiment.
Summary
- Bitcoin whales resumed accumulation after two weeks of selling.
- BTC gained 2.4% while the S&P 500 fell 2.2% in five weeks.
- The long-term headline MVRV at -25% indicates a possible accumulation zone.
Wallets with between 10 and 10,000 BTC invested course from active selling to net accumulation about two weeks ago.
The reversal occurs as bitcoin maintains gains against a weakened S&P 500. Over the past five weeks, the S&P 500 fell about 2.2%, while Bitcoin gained 2.4%.
Gold rose 3.7% during the same period. Analysts at Santiment attribute the divergence to Bitcoin’s lack of ties to a single country’s economy.
They also caught the attention of holders looking outside of traditional stocks amid the ongoing geopolitical conflict involving the United States, Israel and Iran.
Whale wallets increase Bitcoin purchases as price hovers around $71,000
The accumulation between 10,000 and 10,000 BTC wallets is a metric that is closely followed on the Santiment platform.
These entities hold more than 66% of the circulating supply and their activity tends to carry more weight than smaller retail positions.
Retailers have continued to buy during the price decline, which Santiment points to as a possible countervail.
Currently, positive social comments about crypto platforms outweigh negative comments by a ratio of 2:1, the highest reading in six weeks.
Bitcoin MVRV Data Points to Stress for Long-Term Holders
The 365-day market value at realized value (MVRV) reading for Bitcoin stands at -25%. Long-term holders are currently underwater in their positions.
Historical data from Santiment shows that buying when long-term holders are in the red has offered a better risk-reward setup than entering when they are in profits.
Short-term holders, measured over 30 days, have an MVRV of +4.7%, increasing the potential for short-term selling pressure from that cohort.
Funding rates across all exchanges remain negative, with more traders positioned short than long. Santiment notes that this creates conditions for a brief contraction if prices rise.
Whale trading volumes hit the lowest in about a year and a half on March 7. The total non-zero Bitcoin wallet count also reached an all-time high of 58.59 million.
