Octopuses: Bitcoin whales that hold 100-1,000 BTC are piling up
Bitcoin whales, which are about 100 – 1. 000 units from the Having cryptocurrency has started to accumulate more of it, according to the crypto trading platform Kraken. In a report published on Friday, the stock exchange showed stagnating growth in the number of whale addresses since January 3 2020 firmly. Kraken said that the rise in Bitcoin's price in January soon saw an increase in traders with 100-1.000 BTC followed.
“This could mean that the mood among the ₿1. 000 – ₿ 10. 000 Cohorts begin to shift into a new accumulation phase, ”wrote Kraken.
Collect smaller investors too
The increasing number of Bitcoin accumulators suggests that people treat BTC as a store of value. The price of the cryptocurrency rose from $ 3 120 in December 2018 to something more than 10. 000 Dollar in February 2020, which shows that traders have actively increased their risk with this unusual asset.
Last month, Glassnodes noted a similar “build-up” of sentiment among small investors. It was stated that the number of addresses with a balance between 0.1 BTC and 1 BTC since the bottom formation 2018 by 10 percent had risen. And now that the big whales are undergoing similar sentimental change, experts hope that Bitcoin's price rally could continue.
“We expect the accumulation to be completed in the coming weeks / months and the volatility to reappear,” Kraken predicted. “This dynamic of“ accumulation before volatility ”can be explained as an absorption of market liquidity that will create an imbalance between supply and demand in the future.
What drives Bitcoin whales
Kraken noted that the demand for bitcoin as a risk investment against a number of macroeconomic events has increased. The correlation of the cryptocurrency with some of the leading safe havens and high-risk instruments rose shortly after the United States killed a top Iranian military official on January 3. While the dust settled, the outbreak of the corona virus in China created a new risk.
Kraken found that Bitcoin rose sharply when China's central bank tried to inject the economic crisis by injecting about 170 to contain billions of dollars in the system. This could have caused big investors to increase their exposure to Bitcoin, an asset that they could transfer away from China without the government's permission.
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