One of the best ways to understand the performance of the cryptocurrency market is by studying the movements of the large Bitcoin holders. Well, normally, the actions of these great whales are the ones that end up setting the tone of the crypto market, indicating whether it is time to buy or sell. And right now, Bitcoin whales keep hoarding BTC, showing their confidence in the price of the world’s largest cryptocurrency.
Since the middle of last year, the trend has been clear for the big Bitcoin whales. And it is that, regardless of the direction that the price of the cryptocurrency had at the time. The large investors of the crypto world have maintained their holdings in the virtual currency, increasing them when possible. Which only makes sense if they thought that the price of BTC would continue to grow.
To this behavior was added, in addition, the entry of new investors to the cryptocurrency market. Which, through investment funds such as Grayscale, or directly as MicroStrategy and Tesla did, decided to invest billions of dollars in the crypto market in recent months. Being a fundamental component behind the increase in the price of Bitcoin.
Despite this, the Bitcoin whales seem to consider that there is still significant potential within the Bitcoin market for its price to increase. Well, during the latest crashes in the price of the cryptocurrency, which have put the will of even the biggest crypto enthusiasts to the test, Bitcoin whales continue to accumulate, as the latest CryptoQuant analysis shows.
Bitcoin price may grow
Thus, according to the crypto world analysis firm, Bitcoin whales have recently been mobilizing their funds. However, they have not been transferred to exchanges, a previous step for the sale of Bitcoins in the crypto market. Rather, they have been transferred between the investors’ own wallets, which shows an intention of the investors to secure their funds rather than sell them.
«The whales have been accumulating BTC. Bitcoins have been massively transferred, but these transactions did not come from exchanges (…) A significant amount of BTC was transferred to derivatives exchanges from other exchanges, which means that whales could open a long position using their BTC as collateral. This happened in the fall». CryptoQuant CEO Ki Young Ju commented.
Besides, Ki Young also commented the increase in Coinbase’s premium, as a sign of the continued purchases of Bitcoin by institutional investors:
«Institutions like Tesla use Coinbase Prime to buy or sell BTC. These are massive orders that can affect the price of BTC. Coinbase’s premium has been negative / neutral for the past 7 weeks, but turned positive lately, hitting an all-time high a week ago. Long-term bullish».