Bitcoin breaks above $35,000 as whales cause the biggest daily accumulation spike of 2021 with 60,000 worth of BTC being purchased.
For the first time in weeks, bitcoin managed to gain over the weekend. The crypto has climbed over 5% between Saturday and Sunday. One of the key reasons why bitcoin is up over the weekend could be credited to a surge in buying from whales.
According to on-chain analysis company Santiment, whales have purchased 60,000 bitcoin in one day. In a recent tweet, Santiment stated “Bitcoin whale addresses holding between 100 to 10k BTC kicked off July with a 60k BTC accumulation spike, the highest daily spike of 2021. These addresses hold 9.12M coins combined after holding 100k less BTC just 6 weeks ago.”
Whales accumulating BTC
The chart clearly indicates that major bitcoin holders are now accumulating sizable amounts of bitcoin. Most notably, the whales have accumulated over 100,000 coins over the past six weeks alone.
The increase in bitcoin price as well as the accumulation of bitcoin by whales corresponds with the recent decline in mining difficulty. This week saw bitcoin mining difficulty drop by a staggering 28% in its biggest single adjustment in history. The adjustment saw the hash rate also hit a new 19-month low of 87.6 TH/s.
While a declining hash rate may worry some, it is not entirely indicative of price action. While previously reported, bitcoin’s hash rate has been declining along with active addresses since bitcoin reached its all-time high around $64,000. Bitcoin demand has steadily been increasing as liquidity declines.
China mining bans continue
China continues its efforts to thwart bitcoin mining within the country, forcing major mining operations to move overseas or shut down completely. The decline in hash rate is directly related to bitcoin miners in China shutting down operations. However, the low hash rate is having no negative effect on the price of bitcoin currently. Which at the time of writing is currently sitting at $35,516.