The supply of Bitcoin held by whales hit a two-month high. Has the market bottomed out?

Glassnode data shows that the supply of Bitcoin held by whales (holding 1,000 to 10,000 BTC) increased by more than 80,000 to 4.216 million BTC on Friday, reaching the highest level since May. The data also remained basically unchanged on Saturday.

In addition, the number of whale entities also jumped to a three-week high of 1,922. The renewed accumulation of whale entities is good news for the market, as whales played an important role in driving Bitcoin from $10,000 to nearly $60,000 in the five months ending February 2021.

The number of Bitcoins held by whale entities has risen in tandem with prices during the bull run, hitting an all-time high of 4.542 million on February 8. Therefore, the recent rise in the number of Bitcoins held by whales suggests that the market may have bottomed out.

In the following months, whales became sellers, which stalled the bull run. By early May, their Bitcoin reserves fell by 8% to 4.17 million BTC.

During this period, Bitcoin mostly remained in the $50,000 to $60,000 range, with a brief surge to an all-time high of $64,801 in mid-April.

The price action highlights the inability of small investors to shoulder the brunt of the burden and signals the possibility of a significant price correction. Bitcoin fell 35% in May, hitting a low of nearly $30,000, and fell further to $29,031 in June, according to CoinDesk 20 data.

The latest rise in whale balances suggests that the market may have hit bottom.

On-chain data provider Santiment reports that the balances of whale addresses holding 100-10,000 BTC have begun to grow again.

In addition to Bitcoin whales, Bitcoin miners also appear to have begun accumulating.

Marathon Digital Holdings, one of the largest Bitcoin self-mining companies in North America, released an unaudited Bitcoin production and mining update report for June 2021 on Friday. The total Bitcoin holdings increased to approximately 5,784, with a market value of approximately US$201.6 million.

Rob Levy, co-founder of crypto derivatives exchange Hxro, said he is not worried about determining the exact bottom of the crypto pullback.

Levy said he has accumulated a variety of crypto assets during the market downturn and is increasing his holdings of BTC, ETH, Solana (SOL), and FTX (FTT), the native token of crypto exchange FTX.

Additionally, Levy warned that Bitcoin and the entire market could still move significantly lower.