Bitcoin Whales Accumulate 3x Faster Than Issuance Rate

On-chain data reveals that despite a decline in Bitcoin prices from March to April, the number of addresses holding over 1,000 BTC reached a nearly four-month high. According to Glassnode data, the count of these addresses increased from 2,037 at the end of February to 2,107 by April 15th. This figure is close to the levels observed in November to December 2023, driven by the U.S. election rally, but still below the historical peak of nearly 2,500 addresses recorded in February 2021.

The holding structure of Bitcoin whales is undergoing significant changes. The number of mid-tier holders, those with over 100 BTC, has slightly increased to 18,026. Conversely, retail investors are reducing their holdings, leading to a continuous decrease in the number of addresses holding less than 10 BTC. Whales are accumulating Bitcoin at a pace three times faster than the annual issuance rate, and balances on Bitcoin exchanges are consistently decreasing.

This accumulation trend suggests that large investors are confident in Bitcoin's long-term value, despite short-term price fluctuations. The decrease in exchange balances indicates that whales are moving their holdings off exchanges, potentially to cold storage, which could signal a bullish sentiment. The reduction in retail holdings may imply that smaller investors are either taking profits or losing confidence in the short term, but the overall trend of whale accumulation points to a more optimistic outlook for Bitcoin's future.