Bitcoin whales are betting $ 40,000 isn’t the top as data suggests the bull run is just beginning


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Bitcoin (BTC) whales clearly expect massive price hikes in the future as the number of wallets hit an all-time high of over 1,000 BTC ($ 35 million).

Data from the on-chain analytics resource Glassnode confirms there were over 2,400 wallets with large balances as of January 20.

Whale wallets reached record highs

In 2021 alone, 164 new BTC companies were formed with more than 1,000 BTC, which together control around $ 6 billion. While these may not all denote whales increasing their positions, the numbers feed into an existing plot of the wealth transfer that characterized Bitcoin’s recent bull run.

As Cointelegraph reported, the BTC 1,000+ wallet category has been the only one that has increased recently, with the number of smaller wallet holders decreasing in reverse.

While some appealed to Hodler not to sell to whales, others argue that these newly minted big players will aggressively protect the value of their investment.

“Large inflows into whale wallets totaled $ 29,314. They will protect their BTC … This should be strong support for Bitcoin in the short term and hopefully long term,” the resource whale card monitor summed up on Twitter this week.

Bitcoin wallets with 1,000 BTC or more. Source: Glassnode

Bitcoin remains at a crossroads in terms of spot market price action, trading in a corridor between $ 30,000 and $ 40,000 throughout the week. At the same time, institutional giant Grayscale unveiled its largest one-day BTC buy-in to date, which amounted to over 16,000 BTC, valued at around $ 700 million.

“Strong part” of the bull market has not yet started

Looking ahead, however, the indicators continue to show extreme upside potential for BTC / USD.

After Bitcoin’s thermal cap indicated that price is in the early stages of bubble building, volatility now suggests that the market is just beginning to make gains. One point of reference, according to macro investor Dan Tapeiro, appears to be early 2017 – the beginning of an almost year-long upward trend.

Bitcoin / S&P 500 volatility compared to the BTC / USD chart. Source: Bloomberg Intelligence / Dan Tapeiro / Twitter

“Phenomenal chart. Much of the #Bitcoin upward movement has not yet started. The chart suggests we are in the Q117-equivalent period,” commented uploading a combined graph of Bitcoin’s 90-day volatility in the Relation to the 260-day volatility of the S&P 500.

“Volatility spikes at the end of the moves … still near the lows now. It’s hard to believe that #btc could be 5-8x from here in 2021. Preferably just #HODL.”