Ecoinometrics - The Bitcoin whales are buying this rally
Bitcoin on-chain accumulation report, June 2023
Bitcoin is open source, the blockchain is public, the network is permissionless. So there aren’t really insiders the same way there are insiders owning stocks of a public company.
The closest you can get to the idea of insider is to look at what’s happening on-chain. Addresses accumulating and distributing coins, taken in aggregate, can be used as a way of gauging the sentiment that’s driving Bitcoins movement at the most fundamental level.
That’s what we did starting a couple of years ago by introducing the Bitcoin on-chain accumulation score. The higher the accumulation score the more BTC addresses are stacking sats.
It is a bit like watching insider trades for a public company:
There are many reasons insider might sell.
But when they buy more stocks it is always a vote of confidence for the business.
Right now hodlers are saying that they are very confident in Bitcoin.
Without data you are just another investor with an opinion.
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Bitcoin on-chain accumulation report
The takeaway
If you were around during the bull market you probably remember the importance of the infamous 1k to 10k BTC cohort of whales addresses.
Not only are they controlling in aggregate the largest amount of coins. But more often than not those whales have been accumulating right before or during large Bitcoin breakouts.
Over the past 90 days the 1k to 10k BTC whales have been accumulating more than 130k coins. They seem to have leeched the coins out the adjacent whales cohorts. At the same time the small fish are continuing to accumulate at a decent pace.
All this is resulting in an accumulation score of 0.73 which is historically high. So the on-chain situation paints a familiar picture of hodlers being very supportive of the price action.
Now let’s dig into the data.
Breaking down the cohorts
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