The largest holders of bitcoin took advantage of the latest pullback and increased their positions, along with which their role in the cryptocurrency market has become even more significant, analysts from Santiment say.
According to their observations, the number of bitcoins in whale wallets containing more than 1,000 BTC, for the first time in history, exceeded the average wallets containing from 10 to 1,000 BTC. The number of such “whales” has also grown – up to 2,218 and more than 50 during the consolidation period.
“As mid-tier wallets continue to take profits, expect whales to dictate direction more and more,” they write.
🐳 #Bitcoin whales (1,000+ $ BTC addresses) briefly surpassed mid-tier addresses (10-1,000 $ BTC) in terms of percent of supply held for the first time in history. As mid-tiers continue taking profit, expect whales to dictate price direction more & more. 👀https://t.co/F97wNRUAVG pic.twitter.com/feUHtISlYh
– Santiment (@santimentfeed) February 2, 2021
As shown in the graph, since the end of October 2020 and over longer time intervals, the number of bitcoins in the wallets of large holders has been growing steadily, while the indicators of the second group have been falling. At the same time, there is an outflow of bitcoins from exchange wallets, which reinforces observations about the activity of “whales”. On Monday, the balances of exchange wallets in bitcoin dropped to the lowest level in two and a half years at 2,349,040 BTC.
At the same time, CoinDesk analyst Omkar Godbol argues that other blockchain-level metrics paint a bullish picture after weeks of consolidation.
“In 2021, about 26,000 BTC were mined so far. At the same time, the Grayscale investment trust acquired over 40,000 BTC over the same period, “said analysts at Glassnode.
“The breakthrough can happen in two weeks. Everything now points to a bullish trend, ” wrote analyst Alex Kruger, while pointing to the potential strengthening of the dollar as a short-term risk for Bitcoin. “If a bullish trend develops from the last breakout of the dollar index, it could be a problem for Bitcoin.”
Bitcoin has been inversely correlated with the dollar most of the time since the March market crash. Typically, cryptocurrencies have consolidated or pulled back when the dollar has shown strength. The same thing happened at the last drop in bitcoin.
“When risk openness decreases among investors, there is a natural desire to enter the safe zone, which in this case provides the dollar. Bitcoin is still an emerging asset and is subject to investor risk aversion, ” explained LMAX Digital strategist Joel Krueger. – Bitcoin remains attractive in the medium to long term. Over time, due to its characteristics, it should begin to be in demand during the time of risk aversion. ”
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