28.11.2021

Large Bitcoin Investors’ Transfer Volumes Peak

An interesting trend has emerged in the Bitcoin blockchain over the past few days. Wallets with a large number of coins owned by so-called whales – that is, large market players – have begun to show increased activity in moving large amounts of BTC.

The number of transfers worth more than $ 10 million has reached an all-time high. What is most interesting: there was no such high activity in the blockchain even in April of this year, when the price of Bitcoin touched the 64 thousand dollars mark . Let’s talk about what is happening in more detail.

We checked the latest data: Bitcoin continues to hold above 42 thousand dollars. Moreover, on the daily chart, there are still noticeable subsidence of the cryptocurrency up to 28-29 thousand, which occurred in the summer of 2021. This means that the situation has improved significantly since then.

At the same time, on the scale of the last day, the cryptocurrency managed to touch the local bottom at the level of $ 40,753. As analysts noted, this behavior of BTC was still powerful given the weakness of the stock market.

15 minute Bitcoin chart

Bitcoin’s uncertainty affects other cryptocurrencies. It is important to note that over the past week, coins from the top of the rating by market capitalization – that is, the product of the price of tokens by their number – have shown an increase. The leader of the latter was the native tokens of the Solana and Avalanche networks . SOL and AVAX rose 12.5 and 11.9 percent, respectively.

Growth of top cryptocurrencies over the past week

What will happen to cryptocurrencies?

The activity in transactions is shown in the diagram in the screenshot below – here it is compared to the price of Bitcoin.

Bitcoin blockchain activity

According to Cointelegraph , experts from the Material Indicators analytical platform have identified several notable factors in this trend. Whales with a relatively small supply of coins for this caliber of investors are actively selling bitcoins, while the largest players in the market accumulate coins.

Here is a comment from a representative of the analyst team.

Whales sell BTC, megakits accumulate it. If you are trying to understand this game, notice the little liquidity they are trying to grab above.

In other words, a formed trend may be followed by a rapid movement on the Bitcoin price chart. Some experts believe that we are talking about a possible sinking of the market. Such a conclusion can be drawn from the graph of coin inflows to the largest crypto-exchanges : the higher this indicator, the more likely it is that bitcoins sent to trading platforms will be sold on the market . In the chart below, local highs of inflows in most cases coincide with local collapses in the asset value.

Dynamics of coin inflows to exchanges

It is important to note that any analysts’ predictions do not have to come true. Moreover, Bitcoin may well gain a foothold in the current price range and wait out the suspicious activity of investors.

In this case, it remains to count on positive fundamental news – namely, the desire of large professional investors to actively inject capital into the crypto industry in the future. According to a recent survey of 50 fund managers and 50 investment organizations from Europe, the United States and the UAE, 62 percent of them are ready to invest in cryptocurrencies next year. The survey was conducted by Nickel Digital Asset Management and only concerned those who had never invested in digital assets.

Accordingly, experienced investors can raise rates and increase their own cryptocurrency savings without notifying the authors of such surveys. And this will make digital assets more attractive in the future.

A significant portion of the respondents noted that improving the infrastructure of the industry and positive relations with financial regulators have become key factors in their desire to invest in crypto products. Accordingly, with a continuous inflow of new capital, Bitcoin will be able to maintain its position and move from the stage of a prolonged drawdown.

We believe that the conclusions from the current situation are positive in any case. Still, the most experienced and large players in the cryptocurrency market accumulate bitcoins, which means that in the future they expect growth coins from the market. It is not known exactly how long the accumulation will last, however, apparently, bull run for digital assets is still not over this time.

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