Bitcoin’s ‘rich list’ continues to snap up cheap coins

Blockchain data shows sustained bargain hunting by large bitcoin (BTC, +10.08%) holders despite persistent gloom and doom in the market.

• Addresses carrying at least 1,000 BTC, known as the "rich list" or "whales," held 7.89 million coins at press time, an addition of 80,000 since May 19's price crash to $30,000, according to data provided by Santiment.

• The total held by the rich list hit a three-month high of 7.91 million earlier this week.

• "Whales aren't slowing down their accumulation," Santiment tweeted early today. "This is a strong vote of confidence for bulls, seeing top key stakeholders are increasing their bags."

Bitcoin held by addresses owning atleast 1K BTC
Source: Santiment

• The increase by long-term holders signals accumulation during the bear trend, according to blockchain analytics firm Glassnode.

• The data show whales and long-term holders remain confident of the cryptocurrency's prospects.

• Nevertheless, the cryptocurrency may see short-term losses if the U.S. consumer price index, scheduled for release at 12:30 UTC on Thursday, exceeds expectations, boosting concerns of an early unwinding of stimulus by the Federal Reserve.

• "Large upside scare to the [CPI] print will make the downside below $30,000 very vulnerable, and we are most concerned with that now," QCP Capital said in its Telegram channel.

• The impending death cross, or the bearish crossover of the 50-day and 200-day simple moving averages, is also hinting at the scope for deeper losses.

• At press time, bitcoin was trading at $36,300, a 3% drop on the day.

• Prices rose more than 10% on Wednesday, hitting highs above $37,400 even as China announced a ban on virtual-currency mining operations in Qinghai province. El Salvador's decision to adopt bitcoin as legal tender likely buoyed sentiment.