On-chain analytics data provider Santiment has published data on transactions worth more than $ 100,000.
Santiment experts found out that large holders of cryptocurrencies, the so-called whales, have recently been increasing their trading activity. Moreover, their transactions continue to affect market volatility.
🐳 #Bitcoin, #Ethereum, #Chainlink, and #BinanceCoin continue to see long-term rises in whale transaction counts, which we deem any single transactions valued at over $100,000. Large addresses amongst #crypto‘s elite assets continue to make volatile waves. https://t.co/CYSwkCkP26 pic.twitter.com/azJNtuGOa7
– Santiment (@santimentfeed) March 12, 2021
The whales are out hunting
Santiment focused on the number of large transactions, but their volume deserves special attention. The Bitcoin whale moved 5,000 BTC on March 11 from an address that had been dormant for seven years. The transaction amount exceeded $ 280 million at the exchange rate at the time of the transaction.
That’s not all. At the end of January, someone transferred 31,100 BTC from a wallet that had been inactive for about two years. That’s almost $ 1 billion at market rates at the time of the transaction. Such amounts are available only on 42 bitcoin addresses.
According to the BitInfoCharts service that tracks large transactions, this wallet was replenished in 2021, while bitcoins cost the buyer $ 202,000. The owner of the wallet and the recipient of the transfer are not known.
Source: BitInfoCharts
Whale corporations
The effect of whales is well known in the market. However, over the past year, a new phenomenon has emerged in the world of cryptocurrencies: whale corporations. They, too, quickly became one of the factors driving the market. Moreover, the current Bitcoin bullish trend is driven mainly by companies buying Bitcoin.
In August 2020, MicroStrategy bought the first batch of bitcoins. Now the head of the company, Michael Sailor, is considered one of the most influential Bitcoin bulls. He actively promotes the purchase of cryptocurrency and advises colleagues to replace some of the dollars in corporate accounts with bitcoins. Since then, many, including Tesla, have followed his advice.
Tesla bought $ 1.5 worth of bitcoins in January. This became known on February 8. The news provoked a strong reaction in the market. Bitcoin jumped 10%, pulling the rest of the cryptocurrencies with it.
Gray whale
Corporations replenish their coffers with bitcoins, but American investors still find it difficult to gain direct access to cryptocurrency assets due to tight regulation. Some people buy MicroStrategy shares to indirectly participate in the growth of BTC. Others prefer to invest in the Grayscale Bitcoin Trust (GBTC). GBTC is the largest publicly known Bitcoin holder at the moment.
At the beginning of February, he managed over $ 30 billion worth of BTC. In January, Grayscale bought more bitcoins than miners mined in the same period.
Such whales play an important role in the Bitcoin ecosystem. They support demand and, accordingly, push prices up.
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