Bitcoin (BTC) Ownership Landscape Sees Major Shift, New Whales Accumulate

As the Bitcoin (BTC) price consolidates around $66,500 levels, key on-chain development suggests a strong exchange of hands among the Bitcoin owners. Bitcoin whales are back in action while old hands have been distributing their coins once again.

Old Bitcoins Moving To New Holders

CryptoQuant CEO Ki Young Ju recently reported a significant milestone in Bitcoin’s average dormancy, reaching its highest level in 13 years. This surge suggests a notable transition of long-held Bitcoins to new owners.

The observation points to a potential reshuffling of Bitcoin’s ownership landscape, sparking curiosity about the identities of the emerging major shareholders in the cryptocurrency.

#Bitcoin's Average Dormancy hit a 13-year peak recently, indicating a transfer of old Bitcoins to new holders.

The cap table for Bitcoin is shifting, potentially altering the ownership landscape.

Who are the new major shareholder(s)? pic.twitter.com/XaurClSW4r

— Ki Young Ju (@ki_young_ju) April 24, 2024

Since the launch of the spot Bitcoin ETFs earlier this year in January, there have been heavy inflows pouring in. These ETFs have also been buying a large number of Bitcoin amid strong client demand.

Furthermore, whales in the Bitcoin market have also been accumulating heavily. According to recent data from the on-chain analytics platform Santiment, a significant BTC accumulation among whales holding between 1,000 and 10,000 BTC has further boosted the Bitcoin price ascent.

Since the beginning of 2024, these key players have amassed an additional 266,000 BTC, equivalent to approximately 1.24% of the total Bitcoin supply. Concurrently, there’s a notable surge in investor sentiment, characterized by a high level of fear of missing out (FOMO) among market participants.

BTC Price Action Ahead

Despite the strong Bitcoin whale accumulation, the short-term prospects for BTC don’t look so good. Renowned cryptocurrency analyst Ali Martinez has pointed out a significant development in Bitcoin’s price action.

According to Martinez, the TD Sequential indicator has recently signaled a sell order on the 12-hour chart, coinciding with Bitcoin encountering resistance at the midpoint of a parallel trading channel. Given the historical reliability of this indicator, investors are advised to proceed with caution, especially if Bitcoin’s price dips below the crucial support level of $65,500.

The TD Sequential indicator has flashed a sell signal on the 12-hour chart, with #Bitcoin facing resistance at the mid-level of a parallel channel!

Exercise caution, given this indicator's track record. Particularly watchful if $BTC drops below the $65,500 support level. pic.twitter.com/m7iquoi1L5

— Ali (@ali_charts) April 24, 2024

On the other hand, Bitcoin’s monetary inflation rate has also dropped under that of Gold. Thus, as per the stock-to-flow thesis, Bitcoin should overtake the market cap of Gold. Speaking on this, Bitcoin analyst Willy Woo stated: “In my view BTC will lag its S2F valuation by 5-10 years, the world simply doesn’t move quickly. Custody infrastructure, regulations, trading instruments, asset manager acceptance all takes time”.