Data shows that Institutions have amassed a ton of bitcoin in the $ 12,000 to $ 15,000 range According to whalemap analysts, this is a positive trend as institutes and whales often amass assets with a longer-term investment strategy in mind.
The fact that bigger hands are more likely to hoard BTC than retail investors also explains the somewhat suppressed general interest in Bitcoin. as previously reported by Cointelegraph. Multiple metrics including Google Trends, have shown mediocre overall demand for BTC despite the parabolic rally in recent months.
The institutional “FOMO” makes the current BTC rally stronger than in previous cycles
Whalemap analysts described the recent surge in demand for Bitcoin from whales as “Institutional FOMO”.
FOMO, which is short for “fear of missing out”, refers to a trend where investors increasingly buy an asset for fear that it will continue to grow. Referring to a graphic showing the groups of whales and the entries in the whales’ wallets, the analysts they said::
“These are the levels, and this is what the institutional form is.”
Whale pools arise when whale addresses, addresses with more than 10,000 BTC, buy Bitcoin and don’t move it for a long time.
This shows that the whales are planning to store their recent BTC purchases in their personal wallets. Whalemap analysts said:
“The bubbles indicate the prices at which the whales bought the BTC that they currently hold.”
Whale’s aggressive Bitcoin build is likely due to two major trends seen in the cryptocurrency market since October.
First, during the recent rally, there was a sharp drop in short-term contract runs. Previous rallies, when the price of BTC rose, had contracts valued at more than $ 100 million on major exchanges. This shows that the rally was not a short slip, but a real build-up phase.
Second, the spot market led the derivatives market, not the other way around. When the price of BTC rose, the BTC funding rate was rarely above the 0.01% average.
The low funding rate shows that The futures market was not a majority, which shows that the demand came from elsewhere.
This bull market will be more stable than 2017
In addition to increased participation by whales and institutions, the overall volume of trade has increased significantly in the recent recovery.
Data from Santiment, a market chain analysis company, They also show a bitcoin volume of around USD 31 billion and this is much higher than it was on January 6, 2018. At that time, the price of BTC was also hovering around $ 16,350.
Santiment analysts found that out The current rally has more volume than the 2017 rally. Analysts they write::
“Since Bitcoin reached $ 16,350 with CoinbasePro an hour ago, we are now at the highest price level in 34 months (January 6, 2018). The average daily trading volume this week is $ 31.0 billion versus $ 18.5 billion then. “
As Cointelegraph reported that the short-term hurdle for Bitcoin remains whether the whales will sell at a resistance of $ 17,000. Some analysts say there is no clear resistance up to the range of USD 18,500 to USD 20,000, which means an all time high could be a lot closer than most expect.