Mid-Sized Bitcoin Wallets Fuel Price Rally with $113K in New Holdings
Bitcoin wallet holders with between 100 and 1,000 BTC have added 113,950 Bitcoin to their combined holdings since July 15, according to Santiment. This accumulation has lifted their total from 4.11 million to 5.24 million BTC, representing a 2.22% increase.
This buying activity coincides with Bitcoin's price briefly reaching $87,000 earlier this week before retreating and stabilizing near $84,000. Some market analysts are questioning whether this demand is driven by genuine risk appetite or a short squeeze.
Trace Finance co-founder Bernardo Brites suggests that the speed of the recovery was partly due to a short squeeze, rather than a broad return of risk appetite. He noted that Bitcoin's rally through a rate hike, $100 oil, and elevated yields indicates some investors are treating it as a hedge against inflation, fiscal, and geopolitical risks.
The Santiment data has tracked this 100-to-1,000-BTC wallet cohort for five years, and its activity has historically aligned closely with market direction. The current data shows the cohort continued buying through the recovery, indicating that the rally isn't being carried by retail flow alone.