With the recent bullish rally in the world’s flagship cryptocurrency market, some global investors have grown richer within the past few weeks.
As of now, there are 18,000 BTC millionaires, or addresses containing greater than $1 million value of BTC according to data obtained from a crypto analytic firm, Glassnode
READ ALSO: Bitcoin beats $10,000 mark in 7 weeks
— glassnode (@glassnode) July 29, 2020
Recall that the wealth of many BTC investors has grown exponentially at the BTC market, as holders of more than 1000 BTCs or more (who are referred to as whales) have been increasing at a steady pace after BTC’s most recent halving that occurred a few months ago.
What this means: As transaction numbers in BTCs market keep hitting record highs, the number of dollars that buyers invested in $BTC just made a new all-time high. This suggests investors are raising their stakes in the flagship cryptocurrency market
Meanwhile, the flagship currency had remained above the $11,000 resistant level. Data from Coinmarketcap shows that BTC has a market capitalization of about $203.4 billion dollars with a daily trading volume standing at $25 billion.
Quick fact: BTC is a completely decentralized digital crypto-asset, unlike fiat currencies that you can hold in your physically there is no central authority or centralized payment system controlling BTC. Bitcoin operates in a peer-to-peer network that allows any individual in the world to send and receive Bitcoin without any middleman (like a bank, central bank, or payment processor).
Pigs on a rampage, Bitcoin drops $2,000
Bitcoin prices plunged by more than 15%, approaching the $17,000 level.
It appears that the bulls driving Bitcoin upward lately have momentarily gone out of steam. Bitcoin prices plunged by more than 15%, approaching the $17,000 level, after reaching as high as $19,580, owing to heavy losses as large investors cash in on some of their Bitcoin holdings.
- The crypto lost $2,000 in a matter of few hours, falling around $17,000 before it sprang up back to the $17,900 price level.
- Taking into consideration that most bitcoin wallets are in profit, unsurprisingly, some investors are already cashing out some of their gains amid the end of a turbulent 2020.
- That said, its recent price action shows its tilting towards an overbought position.
At the time of writing, Bitcoin price was $17,890.84 with a 24-hour trading volume of $33,259,413,581.
The Head of the blockchain intelligence platform further anticipated the likelihood for Bitcoin to go through a period of correction, as more investors deposit their BTC on Coinbase.
“Too many BTC whales on Coinbase. I’m still long-term bullish, but we might face some corrections or sideways until whales become inactive on spot exchanges.”
Should you buy it?
Although it’s more likely that some Bitcoin whales increase their purchases when prices drop to these levels, Nairametrics, envisages cautious buying, as the volatility in this fast-changing market, could lead to a significant loss of capital.
However, if things get really terrible, Nairametrics believes this could be another chance to buy bitcoin below $15,000.
What you should know
Recall Nairametrics exclusively broke the news on how a crypto strategist, Ki-Young Ju, recently warned on the high influx of big-time Bitcoin holders moving a significant portion of their BTC holdings to a well-known crypto exchange, Coinbase, obviously to cash out, amid the bullish trend currently in play.
Ethereum cools off, drops 10%
Ethereum has recently dropped more than 10% after reaching above $600.
Crypto bears have taken a brief hold on the second most valuable crypto by market value. Ethereum dropped more than 10% after reaching above $600 some hours ago.
- At the time of writing this report, it traded at $553.53 with a daily trading volume of $16,372,458,478.
- It has a circulating supply of 110 million coins and a max supply of ∞ coins.
- It wasn’t all bad news for Ethereum stakeholders, as the number of Ethereum Non-zero Addresses just reached an ATH of 49,977,938.
- Previous ATH of 49,974,788 was observed earlier today, showing that buying interest in the ever-changing crypto market might just be a temporary pullback.
Previous ATH of 49,974,788 was observed earlier today
— glassnode alerts (@glassnodealerts) November 25, 2020
What you should know
Ethereum is a global, open-source platform for decentralized applications. In other words, the vision is to create a world computer that anyone can build applications with, in a decentralized manner, while all states and data are distributed and publicly accessible.
The native currency that flows within the Ethereum economy is called Ether (ETH), which is typically used to pay for transaction fees and also the base currency of the network.
On Ethereum, all transactions and smart contract executions require a small fee to be paid, which is called Gas. In technical terms, Gas refers to the unit of measure on the amount of computational effort required to execute an operation or a smart contract.
What they are saying
ETH sellers should be cautious of a reversal, on the bias that the world’s biggest crypto hedge fund, Grayscale, revealed huge buying interests prevailing at the Ethereum market.
On its Twitter feed, it said: “It’s become clear there’s a strong demand for Ethereum investment products. In our 3Q20 investment report, we saw the largest investment into Grayscale Ethereum Trust ever, with over $202 million in quarterly inflows.”
It’s become clear there's strong demand for #Ethereum investment products. In our 3Q20 investment report we saw the largest investment into Grayscale Ethereum Trust ever, with over $202 million in quarterly inflows. Tap into the $ETH market with Grayscale. https://t.co/nai0ToEioQ
— Grayscale (@Grayscale) November 25, 2020
Ripple’s big players move XRP worth over $50 million
Rich Ripple players seem to be upping their game in Q4, 2020, as regards moving XRP.
Rich Ripple players seem to be upping their game in Q4, 2020, as regards moving XRP – the third most valuable crypto by market value, as lately seen by Nairametrics.
Large investors have increased the pace at which such huge transfers are made, as seen via Whale Alert, with over $50 million worth of XRP in more than 5 transactions transferred within the last 12 hours — hinting that there might be more than meets the eyes.
The two most recent transactions include,
- 20,000,000 XRP (12,591,740 USD) transferred from Unknown wallet to Bitstamp
- 10,000,000 XRP (6,814,748 USD) transferred from Uphold to unknown wallet
That said, many crypto experts anticipate the movement of such cryptos are coming from major stakeholders of Ripple, on the bias some of these wallets contain a significant amount of XRP.
XRP price has jumped by more than 100% since last week, leaving behind the top two cryptocurrencies, Bitcoin and Ethereum in price gain.
What you should know
- Ripple (XRP) plays dual roles, as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.
- Unlike its crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks, such as Standard Chartered and Barclays for international transactions worldwide.
What they are saying
Economic Historian, Barry Eichengreen, recently explained that cryptos should not just be considered for speculative reasons, as leading crypto assets have shown characteristics of being tangible assets.
Barry went on to explain why cryptos have become the new digital gold, “Gold doesn’t really have any intrinsic value. People [believe] it will hold its value because other people value it. There is, from that point-of-view, a parallel with cryptocurrencies. People pay actual U.S. dollars for it, because they think other people will value it and pay actual U.S. dollars for it.”