Home News Bitcoin News

On-Chain Bitcoin [BTC] Trends Suggest That Whales Are On A Stacking Spree

Published by
Nivesh Rustgi
Published 24 Aug, 2020 | 01:50:00 PM UTC
On-Chain Bitcoin [BTC] Trends Suggest That Whales Are On A Stacking Spree
Data suggests that Bitcoin [BTC] hodlers are exhibiting strong hands as the post halving bull market continues to rage. Both institutional and retail investment, on-chain, is at an ATH, looking to ‘stack sats.’

Store of Value

The velocity of ‘money’ is a measurement of the rate of exchange of the ‘currency’ in the market. High velocity is positive for the currency as it represents greater demand and liquidity for that ‘money.’
Nevertheless, in the case of Bitcoin lower velocity represents stronger hands. The chart shows a higher velocity during the prior two bull markets which is yet to be seen in this bull trend. Jamesson Lopp tweeted,
Velocity of total supply and of one-year active supply (i.e. the supply that has been transacted at least once within the last year) of bitcoin has reached lows not seen since 2011. Folks don’t want to part with their bitcoin.
Bitcoin Supply Velocity (Source: Tweet) 

The number of addresses holding more than 1 and 1000 BTC has also reached a new All-Time High (ATH). This is positive from a both retail and institutional perspective. Prominent trader, Filbfilb (alias) tweeted,

The number of addresses with >1 BTC (retail) and the number with >1000 BTC (HNWI / Institutions) has hit all-time highs, at a time when the number of BTC being held on-exchange is reaching new local lows and the inflation rate has recently been halved.
No. Bitcoin Addresses above 1000 BTC (Source: Tweet)

Notably, the time after the asset prices crash during mid-march due to coronavirus crisis saw a considerable increase in the number of addresses above 1000 BTC. This suggests positive buying action by “whales.”

Miners’ Confidence

The first entities to be affected by the halving are miners as their rewards are reduced in half. However, the miners are continually adding to the network, strengthening the long-term value proposition. On the supply side, the total hash rate and difficulty are at new highs. There was a brief drop in hash rates post halving, from which the network has now fully recovered.

Bitcoin [BTC] Total Network Difficulty (Source)
The total hash-rate is at par with the pre-halving levels after reaching a new ATH last week on 16th August. Despite the drop in rewards by 50%, the increasing hash-rate comes with a huge capital investment which builds confidence around the future of the technology.
Do you think that Bitcoin [BTC] is coiling up for a move higher or correction is underway? Please share your views with us. 
Advertisement
Share
Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com

Published by
Nivesh Rustgi
Published 24 Aug, 2020 | 01:50:00 PM
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement

Pro-crypto Mike Selig is reportedly the frontrunner to become the next chair of the U.S.…

October 4, 2025
  • 24/7 Cryptocurrency News

‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications

Nate Geraci, president of Novadius Wealth Management, has predicted that several crypto ETF filings could…

October 4, 2025
  • Bitcoin News

Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model

Bitcoin-backed stocks of Strategy can now be accessed on Robinhood. This represents a significant move…

October 4, 2025
  • Bitcoin News

Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH

The Bitcoin ETFs have seen a huge turnaround this week, recording their largest weekly inflows…

October 4, 2025
  • 24/7 Cryptocurrency News

Expert Predicts SHIB Rally as Shiba Inu Restores Shibarium After $4M Hack Shutdown

Shiba Inu’s Layer 2 network, Shibarium, has returned online following a $4 million exploit that…

October 4, 2025
  • 24/7 Cryptocurrency News

FLOKI Makes History With First ETP in Europe as Price Surges 30%

FLOKI has announced the launch of the first BNB chain exchange-traded product (ETP) in Europe.…

October 4, 2025