The number of investors owning at least 1,000 BTC is growing at a record pace. Data retrieved from Glassnode show that the number of addresses holding at least 1000 BTC has skyrocketed lately.
- The number of Bitcoin whales (entities holding ≥ 1k $BTC) has seen an astounding increase.
- Since the beginning of 2021, more than 200 new whale entities have appeared in the network –– data supporting the case that institutions are arriving.
READ: Crypto market post all-time high, breaks past $1.15 trillion
The number of #Bitcoin whales (entities holding ≥ 1k $BTC) has seen an astounding increase.
Since the beginning of the year, more than 200 new whale entities have appeared in the network –– data supporting the case that institutions are arriving.
Chart: https://t.co/UyP0uwZW5V pic.twitter.com/ymaM2J8ksS
— glassnode (@glassnode) February 4, 2021
So it becomes unsurprising the flagship crypto had remained far above the $35,000 support price level amid a wave of institutional buying and tightening liquidity sighted in the Bitcoin market
- At press time, Bitcoin traded at $37,238.52 with a daily trading volume of $67.4 billion. Bitcoin is down 1.12% for the day.
- Also, Bitcoin supply began to squeeze in October 2020 when looking at available supply on exchanges, according to data by Glassnode. Last year saw over 600,000 BTC leaving exchanges.
READ: Bitcoin on a grand slam win, trading at $41,200
That said, Bitcoin withdrawals from Fiat-on-ramp exchanges (ie. Coinbase, etc) have been an order of magnitude higher than those of crypto dominant exchanges (ie. Binance, etc) throughout the last couple of weeks.
New money is flowing in at a fast pace.
READ: Cryptos likely to gain at least 1000% very soon
#Bitcoin withdrawals from Fiat-on-ramp exchanges (ie. coinbase etc) have been an order of magnitude higher than those of crypto dominant exchanges (ie. binance etc) throughout the last couple of weeks.
New money is flowing in at a fast pace. pic.twitter.com/BkziNxP5T0
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) February 3, 2021
Whales could be anticipating a strong medium to long-term Bitcoin price trend, and are choosing to hold on to BTC in expectation of a bull market.
Much of the recent increase can be attributed to wealthy entities withdrawing their BTC from the exchange. Apparently, this is not new wealth – rather, it represents a change in the way Bitcoin whales are choosing to hold their coins.
READ: Crypto traders suffer heavy losses of $639 million within a day
Bottom Line
Nairametrics believes the increased buying pressures by such investors are partly responsible for the non-dilutable crypto recent highs.