On-chain data shows that Bitcoin whales have recently returned to accumulation mode, which could be bullish for the cryptocurrency’s price.

Bitcoin whales bought 20,000 BTC in the past two days

According to data from on-chain analytics firm Santiment, the month-long sell-off by whales appears to have ended. The relevant metric here is “BTC supply distribution,” which tells us the amount and percentage of the total circulating supply of Bitcoin currently held by each wallet group in the sector.

Wallets are divided into these wallet groups based on the total number of coins they currently carry in their balance. For example, the 1-10 coins group includes all addresses holding between 1 and 10 BTC.

If the supply distribution metric is applied to this specific group, it will sum up the amounts held by all wallets on the blockchain that meet this criteria and calculate what portion of the total supply that sum represents.

Now, in the context of the current discussion, the interesting segment is the 100-1,000 coin group. The chart below shows the trend of Bitcoin supply distribution for this particular group.

Since the range of this wallet group includes very large amounts (lower bound is $2.92 million and upper bound is $292 million), the holders of addresses belonging to this group are likely whales.

Whales are an important part of the Bitcoin ecosystem because they own a large portion of the supply. Since they hold a large portion of the supply, they are able to have a significant impact on the price through their movements.

The distribution of BTC supply among these large investors began to decline in mid-March, which means that whales were selling their Bitcoin.

While this sell-off was occurring, the price of the cryptocurrency stopped surging and touched a stable level around $28,000. However, recently the selling by these holders has stopped as the asset price has seen some additional gains.

Over the past few days, Bitcoin whale supply distribution has even reversed its trajectory, as these investors have now added around 20,000 BTC ($585.3 million) to their combined wallets.

With the latest increase by whales, their total holdings now stand at approximately 3.88 million Bitcoins ($113.4 billion), or approximately 20.07% of the entire circulating Bitcoin supply.

As is clear from the chart, this value is still significantly lower than what Bitcoin whales had before the sell-off began in March. Still, there has been some positive recovery in their reserves.