By CCN: When the whales begin to splash, you can be sure that a large Bitcoin market perspective is out. New research shows that these high-rolling crypto investors gathered a staggering 450,000 BTC over the past nine months, especially since the market was caring for its bear market at the end of 2018. In other words, the whales bought the freaking dip. And now they ride on the bull market for the wave market all the way to the bank.
Slides: Whales Actually 1/4 of all BTC – and they buy more
According to the latest issue of Diar, more than a quarter of all Bitcoin funds are held in "whale" wallets with more than 1000 BTC each. The research article correlates the increase in significant holdings with the recent Bitcoin being in its current price (in August) and points out that addresses holding this coin level have increased to over 26% of the circulating BTC supply.
The analysis excludes Coinbase-controlled addresses because the American crypto exchange giant created a number of these "puppies" when it massively rearranged its cold storage system. If it had taken 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 entered these semi-active accounts over the past nine months, with huge 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 cryptography. Diar writes:
"Bitcoins held by large addresses – mostly exchanges – have seen an exodus of over 300K Bitcoins since the beginning of 2018. In the peaks, these addresses had 750,000 more Bitcoins than they do today, 21% of the Total circulation 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 spend their money. As such, the current trend seems to be accumulation. Tuur Demeesters Adamant Capital published a report earlier this year that reached the same conclusion.
Will Bitcoin go beyond $ 20,000 this time?
If the amount of coins held 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 takes place, where will the bottom be?
Researchers have also argued that whales do not pose any threat to the health of the Bitcoin economy. Beyond the persistent existential threat that a small number of people control large piles of cryptocurrency, a rapid study of market history shows that most hodlers continue to hold. Even in the heady 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 into the 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 sales pressure on the market until we see prices beyond the previous peaks. Some of them may have developed philosophical leanings that keep them in the game in the meantime.
A significant portion of new money entering this market belongs to people who want to speculate and earn from the "buy low, sell high" strategy. The volatility of the Crypto market is such that "high" often does not come within a reasonable window. Other times it happens so fast, the virgin crypto dealer doesn't choose to sell because the market can provide even higher prices.