It seems that for large investors, Bitcoin price fluctuations are no longer as important as they used to be – they are ready to buy cryptocurrency in any conditions.
According to the analytical platform Santiment, after Catholic Christmas on December 25, the volume of BTC purchases from the “whales” only increased. Experts are sure that in just a couple of days the moneybags were able to buy bitcoins for almost $ 650 million.
We checked the actual data: today the capitalization of the cryptocurrency market is at around $ 755 billion. Accordingly, there is not much left before the record of 852 billion, which was set in January 2018.
Here is a graph of the cryptocurrency niche capitalization since the beginning of 2017. It shows that the current growth is much smoother and more restrained than what happened during the growth phase three years ago.
The most popular asset in the world
It is quite difficult to identify “whales” and ordinary investors based on data from the blockchain, since one person or organization can own an unlimited number of cryptocurrency addresses. As a basis for their calculations, Santiment analysts took the volume of transferred bitcoins from small addresses to large ones. Here is a quote from analysts in which they talked about the market situation. The replica is given by Cointelegraph.
In the last 48 hours since Christmas, addresses with 1,000 or more bitcoins now hold 0.13 percent more cryptocurrency supply than regular addresses previously. That’s about 24,158 BTC, which currently equals $ 647.7 million.
That is, experts have estimated the final balance at large addresses that definitely belong to wealthy investors. Thanks to this, it was possible to determine that in just a few days the owners of a serious fortune replenished their wallets with thousands of bitcoins – and this despite the growth in the rate.
According to the CEO of CryptoQuant, Ki Yong Joo, many whales still show no signs of a large sale of coins on exchanges. Here’s a comment from an expert.
The whales seem to be tired of selling. Fewer large investors are now transferring assets to exchanges. I think Bitcoin’s growth will continue as institutional investors continue to buy cryptocurrency.
It should be noted that the market situation remains controversial. Today Bitcoin is trading at $ 28,500 and it would seem that there is very little left to the psychological barrier of $ 30,000. However, bears do not sleep either – short-term players are ready to short-circuit the rapid growth of the main cryptocurrency at any moment, which has almost doubled in price over the past few months.
A similar opinion is shared by a crypto trader under the pseudonym Byzantine General.
At the moment, there are rather conflicting signals. Both bulls and bears are too aggressive. For now, I will not open positions on Bitcoin.
Accordingly, he considers what is happening in the niche rather vague, since it is not clear to predict the further development of the situation. However, in fairness, it is worth noting that analysts were waiting for a correction – that is, a sinking of Bitcoin – by both 22 and 24 thousand. That is, the logic of market behavior here may not work, at least in the near future.
Conclusion: Institutions are still actively buying bitcoins, but the crypto market is on the verge of uncertainty. On the side of the bulls, the belief in the “endless growth” of the cryptocurrency and the rally, fueled by the “whales”. On the bears’ side, there is a gap in the Bitcoin futures price chart. As practice shows, the cost of a cryptocurrency almost always returns to “filling” the gap.
Although many analysts explain this feature solely by the volatility of cryptocurrencies. Yet in the fall, BTC never returned to the $ 9,600 zone, and this is exactly what the adherents of the chart gap theory insisted on.
We believe that the actions of the major players are confirmation of a positive scenario for the coin industry for the foreseeable future. Since they are ready to buy Bitcoin in the range from 25 to 28 thousand and above, this speaks of confidence in further growth that will allow them to earn money. And since there is no massive influx of retail investors – as was the case at the end of 2017 – such a scenario really seems possible.
Do you have your own Bitcoin forecast for early 2021?