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According to on-chain analyst data, large-scale investors of Bitcoin have increased their cryptocurrency buying since Christmas. These whales, made up of both institutional investment firms and large-scale retail investors, are continuing to buy up the supply of Bitcoin, which has impacted the price and sentiment surrounding the cryptocurrency.
Whales buying more Bitcoin
Analysts at research firm Santiment show that nearly $650 million USD worth of Bitcoin was transferred from small addresses into large-scale investor address (or Bitcoin whale wallet addresses). As Santiment showed, whale addresses (investors holding more than 1,000 Bitcoin) now make up 0.13% more than before Christmas:
???? Over the last 48 hours since Christmas, #Bitcoin addresses with 1,000 or more $BTC now own 0.13% more of the supply that smaller addresses did previously. This is about 24,158 tokens, which translates to $647.7M at the time of this writing. https://t.co/KwrKIXrpDa pic.twitter.com/zdHgfM1ing
— Santiment (@santimentfeed) December 28, 2020
As Bitcoin price rises, whale investors buy in at cluster points. This is likely driven by institutional firms buying Bitcoin to add to their assets-under-management (AUM) but stands as the larger individual traders too. While more whales are adding to their assets, it seems fewer whales are looking to sell off. As CryptoQuant CEO Ki Young Ju noted there are fewer whales depositing to cryptocurrency exchanges
$BTC whales seem exhausted to sell. Fewer whales are depositing to exchanges.
I think this bull-run will continue as institutional investors keep buying and Exchange Whale Ratio keeps below 85%.
Chart ???? https://t.co/TLWRvP7pyZ pic.twitter.com/goUmowVv2e
— Ki Young Ju 주기영 (@ki_young_ju) December 28, 2020
Two factors leading to whales buying Bitcoin could be the price rally as well as the positive sentiment (with specifics to a lack of an evident prie dip on the rise) in the cryptocurrency market. Some cryptocurrency analysts foresee the price of Bitcoin continuing to break through barriers of resistance, while others predict that Bitcoin will trade sideways before choosing a direction. Either way, the overall sentiment is that Bitcoin is not headed for a major correction any time soon.