Large Holders Inflow

Overview

IntoTheBlock classifies addresses based on their holdings the following way:

Whales: Addresses holding over 1% of a crypto-asset’s circulating supply.

Investors: Addresses holding between 0.1% and 1% of circulating supply.

Retail: Addresses with less than 0.1% of circulating supply.

In most cases, any holder with over 0.1% of circulating supply of a large cap crypto-asset holds a substantial amount of funds. Therefore, Large Holders Inflow tracks the funds going into addresses belonging to either whales or investors.

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BTC large holder inflow

Large Holders Inflows suggest strong buying activity taking place. This is the case as many of these addresses buy on centralized exchanges and then transfer their acquisitions into cold storage.

Spikes in Large Holders Inflows can point to bottoms in price as these addresses tend to buy in size following significant corrections. As shown above in green boxes, Bitcoin recorded spikes in large holders inflow in late September 2021, December 2021 and January 2022. Two out of these three instances turned out to be the bottom preceding further increases in price.

At the same time, however, it is worth keeping these addresses’ outflows in mind as entities can often transfer out funds they just received for business purposes. For this reason, it is recommended to look at the Large Holders Netflows to account for the net difference in their positions.