Bitcoin’s $ 48,000 rally ‘Elon Musk Pump’ was powered entirely by whales

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Bitcoin (BTC) price rose to over $ 48,000 on February 9 and has been consolidating ever since. Material Indicators analysts noted that whales were the main driver of the rally.

This is largely seen as a bullish sign. The likelihood of a Bitcoin top would increase if retail investors entered the market en masse as both the spot and derivatives markets would overheat.

Why are whales driving up the price of Bitcoin?

In the past few months, so-called “mega whales” have sold large amounts of Bitcoin between $ 33,000 and $ 40,000.

Orders between $ 1 million and $ 10 million rose significantly on major cryptocurrency exchanges, including Binance.

As the price of Bitcoin began to consolidate from $ 40,000 to over $ 33,000 after the correction, buyer demand for whales soared again.

Material Scientist analysts said whales are unusually large in volume, about $ 150 million in 24 hours.

This metric shows that whales are steadily piling up bitcoin following news that Tesla bought $ 1.5 billion in BTC. They said:

“And finally, whales are still driving the whole thing and on the rise! Why is blue so high, one might ask. Bc from whales with an unusually large Abs net volume (USD 150 million in the last 24 hours)! Usually they make up a tiny fraction of total CVD, but now they are the majority. So that move to $ 50,000 was almost entirely whale driven! “

Bitcoin whale CVD data. Source: material indicators

Why now?

Analysts say the frenzy over public companies owning Bitcoin is creating positive market sentiment for the dominant cryptocurrency.

Filbfilb, a pseudonymous bitcoin trader, said that in the current economic environment, shareholders would likely require public companies to secure exposure after Tesla devalued its holding of bitcoin.

In addition, Raoul Pal, the CEO of Real Vision Group, emphasized that Bitcoin is still at the beginning of its rally.

In terms of mainstream awareness, Bitcoin is still generally low profile among casual investors. In 2017, many retail investors rushed to buy Bitcoin. Pal stated:

“Today I had a Zoom call with my oldest, best friends, whom I have known from the age of 6. Some are rich and others are struggling. Only 2 out of 12 own Bitcoin and I have begged and asked for a year. On the other hand, my yoga teacher always begs back to payments for Bitcoin! Early. “