Glassnode report: The number of Bitcoin whales has been rocketing higher since the start of 2019
The number of Bitcoin whales has continued to soar since the beginning of 2019, suggesting that the accumulation cycle has once again emerged thanks to large investors and massive cryptocurrency holdings.
Glassnode report: There are currently more than 1,800 Bitcoin whales
This growth may make many people mistakenly believe that large investors, who have access to massive capital, are making moves to care about the cryptocurrency market and the potential of this new land later. a record high of 20,000 USD
However, the data shows that these rising numbers do not mean that the market has new cash flow; instead, this is because many organizations and individuals withdraw money from exchanges to their wallets.
The number of whales (who hold more than 1,000 BTC) has skyrocketed, suggesting Bitcoin’s medium-term potential is still very bright.
Data from Glassnode also revealed this trend, showing that the trend of accumulation began in January 2018, after the market plunged to low lows for several consecutive periods.
Amount of BTC held by whales (red) and Bitcoin price (gray) | Source: Glassnode
The research company said:
“When we zoom out to view bitcoin’s full history, we see that the BTC balance held by whales peaked in early 2016, and then started decreasing descend. Despite the increase in whale holdings this year, the balance of BTC held by whales is still well below the peak.”
Where does this cash flow come from?
Regarding the reason for the skyrocketing index, Glassnode explained that this was not a new flow of capital rushing into the market. Instead, this is the result of large organizations moving their vast amounts of BTC away from exchanges to individual cold wallets.
It was this act that created more Bitcoin Whales when it was just capital transfers back and forth between wallet accounts.
The report cites Ki-Young Ju – the CEO of CryptoQuant – who noted that crypto bull markets tend to start four months after whale outflows from exchanges hit yearly highs.
“Buy BTC when whales send bitcoins out of the exchange. The BULL market usually starts four months after the exchange average withdrawal hits year-high…”
Money flows out of the exchange (red) and Bitcoin price (black) | Source: CryptoQuant
If this is true, then only a few months away, extremely positive signals can come to Bitcoin in particular and the entire cryptocurrency market in general.
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