The recent developments in the crypto market have been interesting in many ways. With the Bitcoin price soaring, it seems that the whales are playing a crucial role.
The number of Bitcoin whales has reached an all-time high. It shows that the cryptocurrency is continuing in its accumulation phase. The signs are strong and clear, signaling a bullish market.
A Bitcoin whale is an investor who owns a large number of Bitcoins. A Bitcoin whale can be an individual or a business entity.
It appears that there are currently about 2088 investors (addresses) that are holding over 1000 Bitcoins, according to BitInfoCharts. The number of investors steadily rose over the past few weeks. It began in March, where Bitcoin fell to $3600.
Importance of Bitcoin Whales
There isn’t the first-time whales have tried to influence and manipulate the market. As the whale accumulates Bitcoins, the number of BTC in circulation comes down.
This leads to a further increase in demand, thus weaken the bearish signs and strengthening the bullish trends. The more the whales collect, the stronger will be the bullish trend. This will invariably lead to an increase in the price of Bitcoin.
Over the last six years, we have seen a good number of instances where whales accumulated Bitcoin and the price increase followed close at hells. Not just that, when the number of whales went down, the price of Bitcoin also dipped. The whales keep the interest alive when it comes to Bitcoin.
However, this can lead to negative results as well. Whales prefer high liquidity, considering the volume of investments they make. When the BTC price touches the top, the whales will start to sell, and they will do it very quickly by releasing their Bitcoins in bulk. This will lead to a crash in the price as the whales make a profit and exit the market for the time being.
Is It Only Whales?
It seems that it’s not just whales who are accumulating Bitcoin. According to Glassnode, there are around 500,000 Bitcoin addresses (from the last seven years) that have been collecting Bitcoins but never selling a single one of them. These accounts seem to be quite active since 2018 in accumulating the cryptocurrency. The metric firm says that these accounts hold $2.6M BTC.
Stability and Profit
It’s not just accumulators who are gaining an advantage. The hash rate of the network has been touching new highs regularly since the Bitcoin price has been halved in May. This proves that the price is still profitable for miners to continue in the market and make money. The trading activity on the top exchanges is still high even as the Bitcoin reserves are falling, especially when we compare the data to the previous bullish cycles.
This is a direct indication of accumulation where the transaction activity is mainly due to the purchasing of Bitcoin rather than selling it. Since regular investors tend to buy and sell, we can conclude that just about everybody is accumulating BTC.
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