Bitcoin Whales and Hash Rate: Calm Before the Market Storm?

Recently, Bitcoin whale wallets—those that hold 100 BTC or more—have seen an increase of 297 wallets. This marks a 1.9% rise within the last two weeks.

Conversely, the number of wallets holding less than 100 BTC has fallen by 20,629, indicating a slight decline of 0.1% during the same timeframe.

Bitcoin Whales Suggest Possible Market Upsurge

As reported by the crypto analytics platform Santiment, this trend shows that the largest players in the cryptocurrency market are actively gathering BTC, taking advantage of the selling pressure from retail traders.

This type of behavior from whales has historically resulted in bullish trends for Bitcoin, essentially hinting that the market might be primed for an upward swing as major players bolster their positions.

This accumulation pattern resonates with another study by CryptoQuant, which highlighted that Bitcoin whale holdings have reached unprecedented levels, totaling approximately 670,000 BTC. Such accumulation is a robust sign of confidence in the market’s long-term outlook.

“This accumulation phase may represent the calm before the storm for medium and long-term growth. The real surge in Bitcoin prices generally begins when whales gradually decrease their holdings until they hit negative percentage change values.”

Additionally, there is growing concern as to whether Bitcoin will achieve a new price peak between the US presidential elections and late November. Failure to do so could pose significant challenges for the sustaining bull cycle, raising red flags for potential downturns.

Strong Fundamentals for Bitcoin Network

The rise in whale wallets coincides with positive indicators in Bitcoin’s network fundamentals. The network hash rate has recently reached an all-time high, demonstrating increased competition among miners and a subsequent rise in mining difficulty.

This also suggests that BTC’s intrinsic value is increasing, making it more appealing for astute investors, often termed SmartMoney. Furthermore, since mid-September, there has been a noticeable rise in the number of active Bitcoin addresses over the past 30 days, correlating with a significant increase in total fees as on-chain transactions gain traction.

Historically, increases in Bitcoin’s price have been paired with higher active addresses and transaction volumes, indicating a robust network. Even if the market experiences a correction or consolidation phase soon, the underlying network fundamentals strongly indicate that BTC is poised for a bullish trend ahead.