Data on the chain showed that Bitcoin (BTC) whales have been buying more since Christmas. This indicates that high net worth investors continue to devour the supply of Bitcoin.
It is almost impossible to separate institutional investors from individual investors through data on the chain. However, the trend shows that high net worth investors are increasingly entering the Bitcoin market despite its price increase.
Why do whales keep buying more Bitcoin?
According to analysts at Sentiment, $ 647 million worth of Bitcoin could potentially be converted from small addresses to large addresses.
and many analysts consider addresses containing more than 1,000 Bitcoins or more as whales, as 1,000 Bitcoin equals more than $ 27 million at the current price of $ 27,100 .
According to the Coin Telegraph, analysts wrote: In the past 48 hours since Christmas, Bitcoin addresses containing $ 1,000 or more of Bitcoin now have 0.13% more supply than smaller addresses previously had. This is around 24158 tokens, which translates to $ 647.7 million at the time of writing this article.
Bitcoin has increased nearly three times since mid-2020 and it can be said that the upside of Bitcoin is limited in the near future.
However, most data points on the chain show that fewer whales are selling across the major exchanges. “It looks like the Bitcoin whales are cumbersome to sell,” said Ki Yong Ju, CEO of Crypto Quant. And fewer whales are depositing in stock exchanges. I believe that this upward trend will continue as institutional investors continue to buy and the proportion of whales in stock exchanges remains below 85%.
There are two main reasons why whales collect Bitcoin in the current price range. First, despite Bitcoin's over-appreciation, whales may think that the psychological barrier of $ 30,000 will be broken. If so, the options data indicates that $ 36,000 might be a potential near-term target. Second, there is no strong reason to expect a major correction away from the CME gap and high futures market funding rate.
However, if Bitcoin is consolidated after each rally, as we have seen in the past two days, the funding rate is likely to return to normal. And when that happens, the derivatives market will be less hot, increasing the likelihood ...