Original title: “Giant whales” return to the market as Bitcoin prices rebound
As the price of Bitcoin recovers, large investors in the cryptocurrency appear to be increasing their positions. According to the latest data from the blockchain company Chainalysis, since the end of June, the purchase volume of cryptocurrency accounts holding bitcoins worth approximately US$50 million or more has increased steadily. As the price of Bitcoin rebounded above $50,000, this bullish sentiment continued until the end of August.
Philip Gradwell, chief economist at Chainalysis, said: “The recent accumulation of bitcoin by large investors is related to the mid-term changes in the price of the cryptocurrency.”
The activities of Bitcoin whales are related to this year’s price trend. Gradwell said that until the end of February, these large investors were the “driving force” of the market. As they acquire more bitcoins, the price usually rises within 28 days, and when they sell, the price falls.
The activities of the “giant whale” fluctuate with the fluctuation of Bitcoin. The data shows that the “giant whales” were strong buyers at the beginning of the year. As the price of Bitcoin briefly fell in March, the “giant whales” began to sell, and sold when the price of Bitcoin reached its peak around April.
From late June to August 22, these large investors bought nearly $10 billion worth of Bitcoin (calculated at Tuesday’s price). According to Chainalysis data, the Bitcoin holdings of the “giant whales” have now returned to the level of February.
Those large investors are also often long-term holders of Bitcoin. According to Chainalysis, “Giant Whales” retain at least 75% of Bitcoin on average.
Bitcoin hit a three-month high this week and has continued to climb steadily since mid-July. According to data from Coinmarketcap, the value of the entire cryptocurrency market currently exceeds $2.2 trillion.
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