By CCN: When the whales start spraying, you can be sure that a large Bitcoin market move is coming. New research shows that these high-rolling crypto investors accumulated a staggering 450,000 BTC over the past nine months, especially since the market was battling against its bear market flush at the end of 2018.
In other words, whales bought the freaking dip. And now they ride on the tidal wave of the tyrant all the way to the bank.
Slides: Whale Own 1/4 of all BTC – and they buy more
According to the latest edition of Diar, more than a quarter of all Bitcoin funds are held in "whale" wallets with more than 1,000 BTC each. The research article correlates the increase in significant holdings with the last time Bitcoin was at its current price (in August last year) and points out that addresses with this coin level have risen to over 26% of the circulating BTC supply.
The analysis excludes Coinbase controlled addresses because the US crypto exchange giant created a number of these "whale walls" as it massively reorganized its refrigeration storage system. If it had included them, more than 1.2 million BTC would rest in addresses with between 1,000 and 10,000 BTCs each. Instead, about 450,000 BTCs have loaded these semi-active accounts in the last nine months, with a large accumulation at the bottom of the bear market in December.
Private, non-institutional investors have accumulated bitcoin as no business, and "hodling" it – but not on cryptographic exchanges. Diar writes:
"Bitcoins of large addresses – most of which are exchanges – have seen an exodus of over 300K Bitcoins since the beginning of 2018. In the top these addresses kept 750,000 more bitcoins than they do today, 21% of the total circulating supply versus 16% today. "
Diar previously reported that over 50% of all BTCs had never moved. Many of these addresses maintain these high balances because they rarely use their funds. As such, the current tendency seems to be accumulation. Tuur Demeesters Adamant Capital published a report earlier this year, which reached the same conclusion.
Will Bitcoin exceed $ 20,000 this time?
If the amount of coin in this class of addresses is any indicator, the price may go higher than the previous one. With such a large number of people not selling so many coins, those who want to get into Bitcoin will pay higher and higher prices to do so. The real liquidity of the Bitcoin market becomes more difficult to determine as a result: If a mass emigration ever took place, where would the bottom be?
Scientists have also argued that whales do not pose a threat to the health of the Bitcoin economy. In addition to the persistent existential threat that a small number of people control large piles of cryptocurrency, a quick survey of market history shows us that most hodlers continue to hold. Even in the hard days of $ 18,000 and above, many crypto investors failed to move a single coin.
This gives another important point: There is a group of people who bought in BTC on their way up to $ 20,000 and refuse to sell at a loss. Many of these people can be considered "involuntary" hodlers who will continue to put pressure on the market until we see prices beyond the previous heights. Some of them may have developed philosophical fates that keep them in the game in the meantime.
A significant amount of new money into this market belongs to people seeking to speculate and earn from the "buy low sell high" strategy. The volatility of the Crypto market is such that the "high" does not often come within a reasonable window. Other times it happens so fast that the virgin crypto dealer chooses not to sell because the market could give even higher prices.