In the past few months, Bitcoin’s whales have once again become active, although their activity is normal and predictable. These groups of people are considered whales because they own a lot of bitcoins and use it to change the market. But what does this mean for crypto-markets?
Secret Bitcoin Whale Purchases: What is a Whale?
Observing these investors’ every move can be beneficial since their volume is large enough to affect bitcoin’s price, as shown by the bypass data.
Whales move BTC in large volumes, which signifies a market dump or pump. In the same vein, those who treat digital currency like big money can also announce a market dump or pump..In the past, addresses with 1,000 or more bitcoins on their balance sheet have contributed significantly to the movement of the market with their accumulation tendency. Now, again, they are accumulating.
Bitcoin mega whales are stepping out of their shells in order to stock up on the asset. These whales have balances of at least 1,000 BTC and have started buying bitcoins at a rate of knots. These wallets stocked up on 220K BTC over the course of seven days, nearly 10 bitcoins worth of digital assets. This occurred at a time when bitcoin’s price had dropped and the market had plummeted into a state of panic..During this time, many investors were wary of putting money into the market. Not these whales, though. In just over a month, these whales have added a combined 1.06% of the total Bitcoin supply.
It was two years ago, in December 2018, that a rapid accumulation trend of this magnitude was recorded. The #Bitcoin mega whales have been accumulating significantly over the past 7 weeks. There has been a fast accumulation of $ 220,000 BTC to addresses with at least $1,000 BTC since December 23, the fastest accumulation since September 2019.
What happened the last time the whales accumulated?
It is no surprise that the accumulation of bitcoin by these whales has often profoundly impacted the market. In such a short period of time, one can undoubtedly buy a large amount of BTC, which will impact the value of the asset and, in turn, the price of the asset.
This was the case as early as December 23, 2019, as noted in the Santiment report. Now, this was a pivotal point for the next bull rally to begin in the following year. An upward trend was observed following the rapid build-up of whale assets. This trend continued until the market entered a full-fledged bull market.
As stated previously, a bull rally is not necessarily expected to follow such a trend of supply reduction. However, it shows that a trend like this signals future growth for the asset. In combination with a market sentiment shift out of fear territory into the positive, the indicators point in the direction of an upward trend. A break above $ 46,000 would signal the emergence of a bull market.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
