The trend of Bitcoin (CRYPTO: BTC) whales accumulating the cryptocurrency appears to have halted, according to a popular analyst.
What Happened: On Tuesday, Ali Martinez, took to social media platform X, formerly Twitter, to alert the community about the cessation of Bitcoin accumulation by whales. Martinez’s post was accompanied by a chart of the accumulation trend score, an indicator of the on-chain accumulation behavior of large entities.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you’ll also get Benzinga’s ultimate morning update AND a free $30 gift card and more!
As the accumulation trend score has now dropped to zero, Martinez believes this indicates that whales are either distributing or not accumulating Bitcoin at current levels.
“#Bitcoin accumulation trend score has dropped to zero, indicating that whales are distributing or not accumulating $BTC at the current levels!” Ali wrote.
The Accumulation Trend Score is a measure that shows how much Bitcoin different entities are acquiring or selling on-chain. It combines two factors: the size of the entities’ Bitcoin holdings (their participation score) and whether they’re getting more coins or selling them over the last month (their balance change score).
A score closer to 1 suggests that larger entities or a significant portion of the network are accumulating Bitcoin, while a score closer to 0 indicates they’re selling or not acquiring more. This helps us understand the size and behavior of market participants in terms of Bitcoin accumulation over the past month, according to Glassnode Academy.
Whales are typically large holders of Bitcoin, and their accumulation or distribution behavior can significantly impact the market. This shift in their behavior could potentially signal a change in the market’s direction.
Bitcoin $100,000 in 2024?
Will you miss out? Or will you be in a position to profit? Don’t get stuck on the sidelines. If you want expert crypto education and guidance before this bull run goes any higher—Get Benzinga Crypto For Just $1.
See Also: Holding 6 Ethereum (ETH) Could Make You A Millionaire, According to Cathie Wood
Why It Matters: The news of Bitcoin whales halting their accumulation comes at a time when the cryptocurrency’s future value is a topic of much debate. Despite a recent pullback, a Standard Chartered analyst has predicted a more than 100% increase in Bitcoin’s value by the end of 2024. This forecast, combined with the whale behavior, could indicate a significant shift in the market’s dynamics.
Additionally, the BRICS nations are exploring the use of stablecoins and CBDCs to reduce their reliance on the U.S. dollar, potentially impacting the global cryptocurrency market. Meanwhile, meme coins are gaining traction, with a trader predicting that at least three meme coins will surpass a $100 billion market cap.
However, some traders have expressed concerns about the current state of the market, with one warning that the market is overvalued and the current cycle may not be as favorable as the previous one.
These developments, combined with the change in whale behavior, suggest that the cryptocurrency market may be on the verge of a significant shift.
Price Action: According to the data from Benzinga Pro, Bitcoin is currently priced at $66,843, marking a 0.64% increase over the past 24 hours. Impressively, it has surged by 51.33% since the beginning of the year.
Image Via Pixabay
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
