Bitcoin whales have been steadily accumulating Bitcoins, and not selling since the “Black Thursday” market carnage on March 12, 2020. On this day, also known as Crypto bloodbath, BTC prices dropped to $3,600 per coin. Reports from popular exchanges like Kraken, Binance, and Coinbase explained that there was a massive amount of buyers during the 24 hours that followed the market rout. Crypto investors bought the Crypto asset when it was much lower in value.
Onchain data and Blockchain analysis firms indicate that the number of Bitcoin whales with 1,000 to 10,000 BTC or more on a single address has increased significantly.
There is speculation that some of the whale accounts are in fact exchanges and custodians, holding coins for many clients. A unit of Fidelity Investments began offering Crypto custody services this year, for example. But because Bitcoin addresses are anonymous, the exact impact is hard to measure.
Whale numbers have gone up 2% since the halving
Halving spawned new whales while Bitcoin Hodlers have added 233,000 BTC to their addresses and savings from the beginning of the year. Also, BTC price action is creating more holders and whales. As the stationary price in the last 2 weeks, the urge to trade is decreasing and more investors seek long-term bullish trends.
Even though The Bitcoin price action was wildly varying, the actions among long-term investors clearly show the desire to save, not trade or spend their coins. The Hodlers increase in their positions amounts to around 233,000 BTC.
BTC price expected to rise long-term
Short-term price performance has nonetheless appeared to worry some. Price unpredictability followed by a brief downtrend saw BTC drop to $9,000 this week. Technical analysis shows there is a strong support level at $9,250 and if Bitcoin price drops below it a steep pullback could occur short-term.
Despite the price volatility this year, more than 60% of the Bitcoin supply remained stationary for more than one year. This situation started in December 2019 has still remained as the majority of BTC supply didn’t make any moves. Analysis suggests the theory that there is a strong relationship between the amount of supply lying dormant and subsequent upward price action.
Some are calling this long-lasting Hodl wave “insane” as they compare the stationary phase lasting more than a year, to 2016 when this phenomenon happened last, which BTC price saw the bull run from $1,000 to famous $20K in 2017.
We are sure that this situation has worried everyone. Market stability is definitely turning Bitcoin into an exchange currency. Given this situation, what do you think about the Bitcoin whales accumulation?
Are you expecting the BTC price under $9,000?
Are you ready for the next wave of price increases?
Hodler: Hodl is slang in the Cryptocurrency community for holding the Cryptocurrency rather than selling it. A person who does this is known as a Hodler.