Whale HODLers within the Bitcoin community have added a massive 233,000 Bitcoin ($2.1 billion at press time) to their accounts since the start of 2020 according to data from crypto analytics firm Glassnode. The whale community is growing both in numbers and assets in recent times especially around the halving when big investors jumped in and made sizeable investments into the cryptocurrency.
According to the data from Glassnode, the number of Bitcoin entities holding more than 1,000 BTC in their wallets grew by almost 1.5% in May and June alone. The number of addresses with more than the 1,000 BTC in wallets is now at around 1840, which is close to the all-time high figure last seen back in 2017 when Bitcoin last had a significant bull run. However, the accumulation of Bitcoins by whales is no confirmation of a pending bull run as some may say because the same number was witnessed back in 2013 but no bull run followed it.
The accumulation does show that more and more big investors are jumping on the Bitcoin bandwagon. Many are HODLing in anticipation of the future as cash is expected to inflate rapidly while some on the other hand are looking to HODL crypto in anticipation of a sharp uptick in prices. The real motivation of individual whales is hard to predict.
Another interesting metric called the net position change among the whale community shows whether there is a net change in accumulation or liquidation. For the first 170 days (around half) of 2020, 154 days have seen accumulation while liquidation has only been seen in the remaining 16 days. This shows that the accumulation tendency reigned strong overall considerably and the net amount added by whales to their long-term positions was around 233,000 during this time.
Whales are important entities within the cryptocurrency sphere as they have a major influence when it comes to fixing the price of the cryptocurrency. Whales have historically manipulated short-term prices of cryptocurrencies successfully, but it is a one trick pony that some of them like to use from time to time. The more Bitcoin they own, the more scarcity is created within the community and as a result, the price of the cryptocurrency rises as well.
Overall, Bitcoin’s long-term price index is quite stable and has largely remained within $9200-$9200 for some time, within 10% volatility overall for the last month or so. Moves both below and above this range have been immediately negated and thus, the uncertainty remains regarding the long-term future outlook. However, the recent halving, historical pattern and accumulation of the cryptocurrency boosts hopes for a long-term bullish outlook.
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