The number of whale addresses holding Bitcoin (BTC) have hit a new all-time high, the latest data shows. This can be considered bullish, particularly as the price of BTC is showing staying power above $50,000.
The increase in the number of whales indicate that high-net-worth investors are actively accumulating Bitcoin as the bull market continues.
Number of addresses holding $1m Bitcoin. Source: Glassnode
Why is the rising number of whales important?
During bull cycles, the price of Bitcoin could be at risk of a severe sell-off if whales begin to sell or take profit on large positions.
When this happens, it creates a massive downturn because the overleveraged futures market begins to fall, seeing cascading liquidations.
But when whales continue to accumulate, as the on-chain data shows, the foundation for an extended rally strengthens.
Analysts at Glassnode explained that there are now 94,000 BTC addresses holding over $1 million worth of Bitcoin. They said:
“ATH: There are now more 94,000 #Bitcoin addresses holding atTitle: Bitcoin whales continue to accumulate despite BTC price holding above $50K
Sourced From: cointelegraph.com/news/bitcoin-whales-continue-to-accumulate-despite-btc-price-holding-above-50k
Published Date: Thu, 18 Feb 2021 09:00:00 +0000