Despite Bitcoin’s failure to break an important resistance level, as observed since the beginning of June, data from Santiment Research Company shows that the number of BTC whales have continued to go up.
Roughly 67 new addresses containing 100 to 1,000 BTC have joined the network since June 3.
Why these are important: As BTC whales accumulate BTCs, Bitcoins circulating supply reduces, and this can weaken any bearish trend BTC finds itself in. Meaning over time, it’s possible that as Bitcoin approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.
Meanwhile, as countries around the world continue to feel the impact of the coronavirus pandemic, global central banks are printing more money in a bid to stimulate economic activities. These measures have undoubtedly lowered the value of fiat currency.
To gain a better understanding of COVID-19’s impact on Bitcoin, Yoni Assia, CEO of eToro, explained in detail how the world is turning to Bitcoin since the pandemic caused a severe global financial market downturn. He said:
“Since measures were announced by the Federal Reserve to introduce unlimited quantitative easing in an attempt to stem the downward spiral of global economies, many investors have turned to Bitcoin as a hedge against a depreciating dollar.”
Wayne Chen, CEO of Interlapsen, said that bitcoin’s status had changed to become a safe haven asset, “The coronavirus has undoubtedly supported Bitcoin as a safe haven and a store-of-value asset. During any economic uncertainty, people immediately divert to alternative assets such as gold, and now Bitcoin to prevent currency erosion.”
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