A growing number of powerful investors in recent times have been increasing their transactional volume in Bitcoin’s market, triggering the flagship crypto to trade below the $23,500 price level.
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What you must know: Data obtained from Bitcoin Block Bot, a crypto analytic tracker, revealed that an unknown BTC whale transferred 21,200 BTC ($510M) in block 662,249 some hours ago
READ: Bitcoin whale transfers 92,857 BTC worth $1.1 billion
Whale alert! ? Someone moved 21,200 BTC ($510M) in block 662,249 https://t.co/pZNGxjzQak
— Bitcoin Block Bot (@BtcBlockBot) December 20, 2020
Why it’s happening: Global investors and crypto-traders are now cashing in on some of their profits. Though it’s often challenging in anticipating market movements in the ever-changing crypto market. Bitcoin whales have shown historically that they often determine the BTC trend.
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At the time of writing this report, the flagship crypto, traded at $23,312.26 with a daily trading volume of $36,257,814,200. BTC price is down -0.6% for the day.
What this means: Prevailing market conditions at the flagship crypto market reveal, large crypto investors and traders are moving large stacks of Bitcoins which are typically known as Bitcoin whales.
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- This means that a BTC whale is an entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
- As BTC whales accumulate BTCs, bitcoin’s circulating supply reduces, and this can weaken any bearish trend bitcoin finds itself in.
- This means that over time, 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.
READ: Bitcoin whale transfers $105 million worth of crypto, BTC trading at $15,800
Should you still buy: Nairametrics, however, advises against investing a large pool of capital into a volatile financial market like Bitcoin, instead an investor or trader can allocate smaller amounts periodically over time.
