The data showed that high net worth investors have bought more and more bitcoins in the last four days
Commercial activity in the Bitcoin blockchain has been volatile since Christmas and whales may be the reason. Whales have contributed to consume the Bitcoin supply by buying the crypto asset aggressively, according to the network data.
In recent months, the cryptomeda sector has seen an increase in the number of high profile names, mainly from the financial sector, that have entered the Bitcoin market. This increase, it seems, won’t diminish so soon. The data describe a flow of rich investors in the market. However, there is an important point to be observed. It is difficult to distinguish individual investors from institutional investors through on-chain data.
Addresses with over 1,000 BTC (translating to $26.5 million at the current price of $26,500) are widely regarded as whales. Santiment analysts believe that more than $645 million in bitcoins have been transferred to large addresses.
The on-chain data provider Santiment posted on Twitter: „In the last 48 hours since Christmas, #Bitcoin addresses with $1,000 or more BTC now have 0.13% more supply than the smaller addresses before. That’s about 24,158 tokens, which translates to $647.7 million at the time this article was written“.
Interestingly, many high net worth investors are holding their assets, despite Bitcoin’s current high. Only a small number of whales have sold their assets according to the network data points.
CryptoQuant CEO Young Ju explains: „The Bitcoin Cycle whales seem sold out. Fewer whales are depositing in the stock markets. I think this bullish run will continue as institutional investors continue to buy and the whale’s exchange rate remains below 85%“.
Analysts attribute this to two main reasons. First, the whales probably believe that the digital asset will exceed $30,000 and even reach $36,000, hence the accumulation. Two, the whales don’t foresee a major correction happening anytime soon.
The Twitter user ‚Byzantine General‘ wrote on the social platform that the market was showing inconsistent and conflicting signals. He went on to explain that short and long term lengths were possibilities, as short and long term investors were being aggressive.