Bitcoin [BTC] has managed to retain its position above the $27,000 mark, keeping holders enthusiastic and encouraging further accumulation. However, it’s not just Bitcoin that’s been catching the attention of investors; Wrapped Bitcoin (WBTC) also experienced a surge in interest.
It’s a wrap!
For context, WBTC, short for Wrapped Bitcoin, is a tokenized version of Bitcoin that operates on the Ethereum blockchain.
It allows Bitcoin holders to participate in the Ethereum ecosystem, providing liquidity for decentralized exchanges and lending platforms. This interest in WBTC can have positive implications for the crypto market.
Santiment’s data revealed some compelling trends regarding WBTC.
In October WBTC observed $1 million+ whale transactions, its highest since March. Additionally, there was a substantial increase in network growth, the likes of which haven’t been seen since July.
Most interestingly, there’s been a notable spike in the creation of wallets holding between 1-1K WBTC. A pattern reminiscent of what occurred just prior to both the March and June crypto rallies.
Whales move in
Another aspect to consider would be the increased involvement of whales. Glassnode’s data revealed that the number of addresses holding 1+ Bitcoin has reached an all-time high of 1,023,292.
While this demonstrates growing interest and participation from large holders, it can also introduce a level of volatility in the market.
The surge in whale activity can be a double-edged sword. On one hand, it signifies growing confidence in Bitcoin and the broader crypto market. On the other hand, it can lead to significant price swings, as large holders have the capacity to influence markets with their trading decisions.
Upon closer examination of Bitcoin’s distribution among the largest holders, Arkham Intelligence identified prominent entities falling into distinct categories.
Among public companies, Coinbase stands as a significant player, with a substantial holding of 2.0 million BTC. This sizable stash translates to an impressive valuation of approximately $55.7 billion.
In the category of asset managers, Grayscale took the lead. With its management of 628,000 BTC, Grayscale commands a substantial portfolio valued at around $16.5 billion.
Even government entities entered the Bitcoin arena. The United States government held much sway with ownership of 206,000 BTC, representing a significant value of approximately $5.7 billion.
Despite the positive sentiment and increasing interest from whales, there’s a concerning trend related to miner revenue.
Miner revenue was on a decline, which could potentially force miners to sell some of their holdings to maintain profitability. This rising selling pressure from miners might affect Bitcoin’s price in the short term.