Potential bullish trend in bitcoin: 'whales' increase their holdings to two-month highs

The supply of bitcoins in the hands of the "whale entities" has reached a maximum of two months this Sunday, in a start of a potential bullish trend on the cryptocurrency market. Blockchain data shows that wealthy investors are returning to the market, 'Coindesk' reports.

The number of coins in the hands of entities known in the crypto community as 'whales' - groups of addresses controlled by a single participant of the network that owns between 1,000 and 10,000 bitcoins - increased by more than 80,000 to reach 4.2bn bitcoins on Friday, July 2, its highest level since May.

The number of these entities has also jumped to a three-week high of 1,922. Both figures have remained virtually unchanged since then, according to data provided by 'Glassnode'.

The renewed buildup by the 'whales' is good news for the market, as these wealthy investors played a major role in the bitcoin rally from $ 10,000 to almost $ 60,000 that ran for five months through February 2021.

The balance in the hands of the whale entities increased in line with the price during the bull run, reaching an all-time high of 4.5bn on February 8. From that milestone, the big bitcoin holders became sellers in the following months, losing 8% on their accumulated holdings.

According to experts, the new rally in this data suggests that the pullback experienced during the following months may have bottomed out, which is indicative that the bulls are taking control of cryptos again.

Translated by Caoimhe Toman