One of the best ways to understand the performance of the cryptocurrency market, is by studying the movements of large Bitcoin holders. Well, normally, the actions of these big whales are the ones that end up setting the tone for the crypto market, indicating whether it’s time to buy or sell. And right now, Bitcoin whales continue to accumulate BTC, showing their confidence in the price of the world’s largest cryptocurrency.
Since the middle of last year, the trend has been clear for big Bitcoin whales. And it is that, regardless of the address that had at the time the price of the cryptocurrency. Large investors in the crypto world have maintained their holdings in the virtual currency, increasing them when possible. Which only makes sense if they thought the price of BTC would continue to grow.
To this behavior was added, in addition, the entry of new investors to the cryptocurrency market. Which, through mutual funds such as Grayscale, or directly as MicroStrategy and Tesla did, decided to invest billions of dollars in the crypto market over the past few months. Being a fundamental component behind the rise in the price of Bitcoin.
Despite this, Bitcoin whales seem to consider that there is still significant potential within the Bitcoin market for its price to rise. Well, during the latest cryptocurrency price drops, which have put the will of even the biggest crypto enthusiasts to the test, Bitcoin whales continue to accumulate, as evidenced by CryptoQuant’s latest analysis.
Bitcoin price may grow
So, according to the crypto world analysis firm, Bitcoin whales have recently been mobilizing their funds. However, they have not been transferred to exchanges, a previous step for the sale of Bitcoins in the crypto market. Instead, they have been transferred between investors ‘ own wallets, demonstrating an intention of the investors to secure their funds rather than sell them.
«Whales have been accumulating BTC. Bitcoins have been massively transferred, but these transactions do not come from exchanges ( … ) A significant amount of BTC was moved to derivatives exchanges from other exchanges, meaning that whales could open a long position using their BTC as collateral. This happened in the fall». Commented CryptoQuant CEO Ki Young Ju.
Besides, Ki Young too comment the increase in Coinbase premium, as a sample of the continuous purchases of Bitcoin by institutional investors:
«Institutions like Tesla use Coinbase Prime to buy or sell BTC. These are massive orders that can affect the price of BTC. Coinbase’s premium has been negative / neutral for the past 7 weeks, but turned positive lately, hitting an all-time high a week ago. Bullish long term».