A large Bitcoin whale (BTC) at 68,000 BTC ($ 523 million) has not moved its funds in over five years, and the chain’s data shows that other whales have been similar to their BTCs for an average of 4.7 years have held. .
Although Bitcoin is the best-placed cryptocurrency on CoinMarketCap, whales that keep digital assets that haven’t been sold for years don’t protect BTC from a pronounced downtrend. On March 12, the price dropped to just $ 3,600 and many whales were not moving their money at that time.
However, the data shows that despite the risk of a significant correction in the multi-year support range of $ 3,000 to $ 4,000, many whales like to stick to BTC. This shows an optimistic long-term trend for the cryptocurrency market and the patience of wealthy investors.
A big move from Bitcoin Walfonds. Source: CoinMetrics
What are the whales doing?
The infrastructure supporting the cryptocurrency market has improved exponentially since 2015. More and more trustworthy custodian banks are opening up, there is a larger selection of futures exchanges and there are regional wallets that are largely secured by stable banking services.
Both private and institutional investors are actively accumulating Bitcoin after intensive corrections. An analysis report published by Coinbase found that after the drop to $ 3,750 in March, private investors bought the decline immediately.
Data from the Grayscale report for the first quarter of 2020 also showed a noticeable increase in demand for bitcoin by institutional investors.
The more investors accumulate Bitcoin, the lower the current supply of BTC. This can weaken the main downward trends in the market.
Over time, the correction phases can become weaker and faster as Bitcoin approaches its fixed offer of 21 million.
Whales and other long-term holders may consider Bitcoin to be the best long-term asset because lost funds cannot be recovered, coin supply is limited, and halving the rate of introducing new supplies to the market.
CoinMetrics researcher they said::
“A great bitcoin whale just graduated from its 5-year HODL. Last week, 68,000 BTC left the 5-year active supply band, indicating that the last time they moved in the chain was in April 2015.”
Even if the halving is only 13 days away, there is still a possibility that BTC will suffer a severe retreat despite the reluctance of the whales to sell their possessions. However, the optimistic attitude of the whales reduces the likelihood of a surrender-like decline in the short term.
Has BTC’s “real price” fallen below $ 3,000?
Just 24 hours after the fall of Bitcoin to $ 3,600, Bitcoin rebounded to over $ 4,000 and eventually returned to $ 7,000 within a month.
As Cointelegraph previously reported, the decline from $ 8,000 to $ 3,600 was due to a cascade of settlement exchange settlement, particularly BitMEX. Therefore, it was the liquidation of traders with excessive leverage that triggered the decline, and not spot sales by the whales.
HODLers’ move confirms the theory that BTC should never have dropped below $ 5,000 and investors who bought the jump in the $ 3,000 to $ 4,000 range are unlikely to sell soon.
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