Wealthy investors look to be making a comeback into the Bitcoin [BTC] market, a blockchain metric that warned of a price drop by early May reveals.
The number of coins held by whale entities – clusters of addresses managed by one network participant holding 1k to 10k BTC – rose by over 80k to 4.216 Mln BTC earlier on Friday, hitting the very best level since May.
The tally remained largely unchanged earlier on Saturday, consistent with data provided by Glassnode.
The number of whale entities has also jumped to a 3-week high of 1,922.
The renewed accumulation by whale entities is optimistic news for the market, as these wealthy investors played a big role in powering bitcoin higher from $10k to just around $60k within the 5 months to February 2021.
The balance held by whale entities rose in tandem with the worth during the Bull Run, hitting a record high of 4.542 Mln on 8th Feb.
Whales became sellers within the subsequent months, taking the wind out of the Bull Run, and by early May, their bitcoin stash had dropped by 8% to 4.17 Mln BTC.
Bitcoin mostly remained coiled within the range of $50k to $60k within that period, barring a quick spike to a record high of $64,801 USD in mid-April.
The price action highlighted the lack of smaller investors to undergo the rich lifting and signaled the potential for a notable price correction. Bitcoin fell by 35% earlier in May, hitting lows near $30k, and dipped further to $29,031 USD in June, per CoinMarketCap data.
The latest uptick within the whale balance suggests rock bottom may have already been touched.
The cryptocurrency is trading near $35.5k at the reporting time, representing a +2.3% gain for the day.