Bitcoin whales (BTC) have been buying more since Christmas, data from the chain shows. This suggests that wealthy investors are still gobbling up the BTC supply.
It is almost impossible to separate institutional investors from individual investors using on-chain data. However, The trend shows that despite its rally, investors with large capital are increasingly entering the Bitcoin market.
Why do whales keep buying bitcoin?
According to analysts at Santiment Around $ 647 million worth of bitcoin has likely moved from small addresses to large addresses.
Many analysts agree Addresses greater than 1,000 BTC or more are whales, as 1,000 BTC equals more than $ 27 million at the current price of $ 27,100. Analysts they write::
“In the last 48 hours since Christmas, # Bitcoin addresses with USD 1,000 or more BTC now have 0.13% more supply than smaller addresses before. That is approximately 24,158 tokens, which is $ 647.7 million at the time of this writing. “
Bitcoin has risen nearly three since mid-2020, and BTC’s surge is likely to be limited in the near future.
Even so, Most of the data points in the chain show that fewer whales are being sold on major exchanges. Ki Young Ju, CEO of CryptoQuant, said:
“The whales from BTC appear to be out of stock. Fewer whales deposited on exchanges. I think this uptrend will continue as long as institutional investors keep buying and whales keep their share of the stock exchanges below 85%. “
There are two main reasons whales might be hoarding Bitcoin in the current price range.
First, despite Bitcoin’s excessive rally, whales may believe the $ 30,000 psychological barrier will be breached. If so, the option dates suggest it $ 36,000 could be a goal probably in the near future.
Second, there is no strong reason to expect a bigger correction than the CME gap. and the high financing rate of the futures market.
However, if Bitcoin consolidated after each rally, as seen for the past two days, the funding rate would likely normalize. If so, the derivatives market would be less overheated, increasing the likelihood of another rally.
A pseudonymous trader known as “Byzantine General” said the market was giving mixed signals. Both long and short contract holders are aggressive and allow short and long positions to be throttled. said::
“Such contradicting signals at this point. Both the longs and the shorts are too aggressive hahaha. I should probably sit on my hands. “
The likely short-term scenario is one more consolidation
Usually the price of Bitcoin on Coinbase is higher than that of Binance and other exchanges that depend on Tether. However, for the past week, Bitcoin was trading a little lower on Coinbase between $ 20 and $ 30.
Although the gap is smallshows that the US, which fueled Bitcoin’s rally in December, could see a slowdown in buyer demand. However, the Asian market and the derivatives market are seeing an increase in demand from buyers.
Given that the demand for bitcoin appears to be cooling in the US spot market, bitcoin could consolidate longer with lower volatility.