At the BTC market, BTC whales have been increasing at a steady pace after Bitcoin’s recent halving, as data seen from Glassnode show that there are currently more than 1,800 Bitcoin (BTC) whales.
Quick fact about BTC whales: In the Bitcoin world, investors or traders who own a large number of Bitcoins are typically called Bitcoin whales. This means a Bitcoin whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
Whales could be anticipating a strong medium to long-term Bitcoin price trend, and are choosing to hold on to BTC expecting a bull market. Eichholz explained:
“Where did all these new whales come from? Much of the recent increase can be attributed to wealthy entities withdrawing their BTC from exchanges. Apparently, this is not new wealth – rather, it represents a change in the way Bitcoin whales are choosing to hold their coins.”
From a macro level, this increase in the number of BTC whales can be considered bullish.
As BTC whales accumulate BTCs, Bitcoins circulating supply reduces, and this can weaken any bearish trend BTC finds itself in. Meaning that 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.
“While there is no single explanation of what caused these large holders to withdraw their BTC from exchanges, [Bitcoin exchange outflows] suggests that whales may have used Black Thursday as an opportunity to get in at the bottom and then withdraw their bitcoin to HODL for the longer term in anticipation of the next Bull Run.”
Download Nairametrics App for breaking news and market intelligence.