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Bitcoin Whale Numbers Rise as Market Sees Price Volatility

Bitcoin (BTC) has showcased notable price fluctuations, with its value-making movements around the $43,000 mark. Despite a slight decrease of 0.14% in the last 24 hours, bringing the price to $43,060.65, the cryptocurrency has seen a range between $42,584.34 and $43,252.05. Amidst this volatility, an interesting trend has emerged concerning the behavior of Bitcoin whales, as reported by the crypto analytics firm Santiment.

Diverging Trends Among Bitcoin Whales

Santiment’s analysis highlights a distinct shift in the composition of Bitcoin whales, indicating a divergence in investment strategies among large-scale holders. On February 1, the number of whale entities holding between 1,000 and 10,000 BTC rose to 1,958, marking the highest level observed since November 2022. This increase contrasts with the movement of smaller whales, those holding between 100 and 1,000 BTC, which decreased to 13,735, the lowest count since November 2022.

This data suggests a growing interest among larger investors, with 47 new wallets added in this category over six days. Meanwhile, the smaller whale category saw a reduction of 157 addresses in the same period. The contrasting dynamics between these two groups of investors underline the complex and multifaceted nature of the current Bitcoin market, with larger whales increasing their holdings while smaller whales potentially looking towards diversifying their investments.

Impact of Spot Bitcoin ETF Products

The landscape for BTC investment has changed significantly with the recent approval of spot Bitcoin ETF products by the United States Securities and Exchange Commission (SEC) in January. This development has altered the accumulation dynamics within the cryptocurrency market, particularly affecting the number of large Bitcoin whales.

The introduction of spot Bitcoin ETFs allows mainstream investors to engage with Bitcoin in a regulated framework, contributing to the increase in large whale numbers. As these ETFs attract more subscribers, a portion of the proceeds is directed toward purchasing Bitcoin, thereby increasing the overall count of large-scale holders. This mechanism suggests a potential for further growth in the number of BTC whales as the ETF products gain traction among investors seeking exposure to cryptocurrency through a conventional investment vehicle.

Read Also: Spot Bitcoin ETF: Vanguard Reps Apologize For Lack Of Crypto Vision

The post Bitcoin Whale Numbers Rise as Market Sees Price Volatility appeared first on CoinGape.

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