47% of Bitcoin entities are whales
- 25th July 2020
- Posted by: Hakeem
- Category: CryptoCurrency
As the COVID-19 pandemic resurgence disrupts global financial market, coupled with the recent weakening of the American dollar, the number of whales, has been increasing at a steady pace after Bitcoin’s recent halving. Data seen from Glassnode show that about 47 % of BTC holders are Bitcoin (BTC) whales.
Data obtained from Coinmarketcap shows that BTC is presently trading around the $9500 support levels, with a market capitalization of over $176 billion dollars and the flagship cryptocurrency having a trading volume at around $16.3 billion, at the time this report was drafted
Quick fact; In the Bitcoin world, investors or traders who own a large number of Bitcoins are typically called Bitcoin whales. This means a Bitcoin whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
Whales could be anticipating a strong medium to long-term Bitcoin price trend, and are choosing to hold on to BTC expecting a bull market. Eichholz explained:
“Where did all these new whales come from? Much of the recent increase can be attributed to wealthy entities withdrawing their BTC from exchanges. Apparently, this is not new wealth – rather, it represents a change in the way Bitcoin whales are choosing to hold their coins.”
As BTC whales accumulate BTCs, Bitcoins circulating supply reduces, and this can weaken any bearish trend BTC finds itself in. Meaning that over time, it’s possible that as Bitcoin approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.