Major holders of the first cryptocurrency on January 11 did not give in to panic amid the recent price drop and increased their positions. This is indicated by Glassnode data.
The number of Bitcoin addresses holding more than 1000 BTC rose to a new high (2140) against the backdrop of the price spike from $38,250 to $30,400 and derivatives-market liquidations of $1.49 billion. The volume of on-exchange trading the day before exceeded the peaks of 2017.
Data: Glassnode.
The growth in the number of Bitcoin whales under such circumstances signals confidence among major investors that the correction will be short-lived. In previous bull cycles, growth was often accompanied by declines of 20% and more. The current growth phase is fueled by institutional investment. This sets the market apart from the 2017 situation, when it was swept by retail investor mania.
According to Glassnode, the number of whales has risen by 25% over the past year. In particular, it increased by 200 addresses over the last two weeks.
During the recent correction, the number of addresses holding less than 0.01 BTC slightly decreased. This may signal that some retail investors have exited the market.
According to Glassnode’s Chief Technology Officer, Rafael Schultze-Kraft, the short-term pullback should not affect confidence in Bitcoin’s long-term rise. The expert believes that new all-time highs across a number of fundamental metrics continue to signal a case for holding the coins.
Active addresses: ATH
Active entities: ATH
Difficulty: ATH
Hash Rate: ATH
Number of whales: ATH
Illiquid supply: ATH
Non-zero BTC addresses: ATHDon’t let short-term $BTC price action distract you.
Fundamentals are strong.
The network is healthy.
— Rafael Schultze-Kraft (@n3ocortex) January 11, 2021
In early December, Rafael Schultze-Kraft suggested that Bitcoin’s price could rise above $200,000.
Earlier, billionaire Mark Cuban expressed confidence in Bitcoin and some altcoins to ride out a ‘market bubble’.
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