BTC whales are on the rise as Bitcoin breaches the $12,000 price level.
Data obtained from Bitcoin BlockBot, a BTC analytic tracker, has shown that a Bitcoin whale has moved 19,721 BTC valued around $242 million.
Whale alert! ? Someone moved 19,721 BTC ($242M) in block 644,178 https://t.co/6nzGw39FRV
— Bitcoin Block Bot (@BtcBlockBot) August 17, 2020
Also, data obtained from Coinmarketcap, another crypto analytic firm, shows that the flagship currency is presently above the $12,000 price level, with a market capitalization of about $227 billion
Why this is happening: Global investors and crypto-traders are now cashing in on some of their profits, as the crypto market is awash with cheap money coming from stimulus packages from global central banks.
READ MORE: Why 47% of Bitcoin entities are whales
While it is difficult to predict market movements, BTC whales have shown historically that they often determine the BTC trend.
Quick fact: At the BTC market, investors or traders who own large amounts of bitcoins are typically known as Bitcoin whales. This means that a BTC whale could be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
As BTC whales accumulate BTCs, Bitcoin’s circulating supply reduces. This can weaken any bearish trend Bitcoin finds itself in. In other words, it’s possible that as BTC approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.
In an explanatory note to Nairametrics, Ekene Ojieh, Head of Public Relations and Corporate Strategy at Buffalo Chase, a crypto-asset custodian management company, gave vital insights on why BTC is attracting investors attention now. She said:
“In the past few weeks, gold saw a new all-time high of $2034 which is about 42.6% in the last decade.
“Bitcoin has gained about 8.9 million percentages over the last decade. Security and scarcity are the topmost reasons why traders have trust in safe-haven assets like gold and bitcoin.
“Bitcoin would outperform gold in a foreseeable future because it’s easily accessible for anyone with internet and of course a more profitable asset than gold.”