Just the way whales rule in the sea, they also have a say in the proverbial ocean of Bitcoin (BTC). The blue whales of digital currency, holders of digital currencies worth millions or even billions of dollars, can change this nascent space instantly.
They can do this by issuing gigantic orders or by moving huge sums of digital currencies around. They do this mainly to ignite fear or the interest of investors. According to a recent report by Bloomberg, the whales in the crypto market has started acting up, and this potentially indicates that chaos is set to occur in the next few months.
Bitcoin (BTC) Whales Are Emerging At an Enormous Rate
Olga Kharif of the outlet pointed out that beginning from October, a lot of long-term, notable HODLers that did not touch their Bitcoin holdings for 6 months to 30 months (2.5 years) started interacting with their holdings. Since then, a lot of whales have been surfacing in the crypto space.
The statistics also show that Bitcoin (BTC) wallets transacting over the past month have access to 60 percent of the present circulating supply of Bitcoin. Bloomberg cited these statistics from Flipside Crypto – analytics provider and aggregator.
The CEO of the startup – David Balter – also pointed out that there has been a definite awakening of long-term Bitcoin (BTC) holders. This trend has seen the number of inactive BTC accounts reduced to 2.8 million from 3.8 million in mid-Sept. to late-Dec. last year. This is a reduction of about 27 percent in just a few months.
Bitcoin (BTC) Price Today – BTC / USD
While speaking to Bloomberg regarding this issue, Eric Stone – the head of data science at Flipside – said that there has been a significant shift. He said that these results could be pointing to inbound drastic price swings. Stone’s comment is not baseless. He further pointed out that the supply of active Bitcoin has increased by 40 percent since the summer of last year.
He also explained that the uptick in active Bitcoin (BTC) in 2017 preceded the monumental run-up of that year; this sent Bitcoin towards the $20k level.
What Is Up Ahead for the Digital Currency Market?
The above statistics do not really indicate that rough seas are waiting for the seamen of digital currency. Nevertheless, a lot of people believe that these basic signs could signal that something unusual is fast approaching. A recent analysis performed by Delphi Digital, which was routed through “The Next Web’s Hard Fork segment,” highlighted that there has been a significant increase in UTXOs (Unspent Transaction Outputs).
This shows that investors are accumulating Bitcoin (BTC) that could account for the uptick in active accounts. The research group also stated that older BTC holders have exhausted the majority of their selling efforts. The research team of Delphi went on to say that all of these signals that a round of accumulation is taking place – an accumulation similar to that seen at the end of 2018. In other words, BTC might soon hit a major bottom.
The group did not give a definite price prediction. However, from the analysis, the upcoming bottom is likely far lower, and it will likely occur very soon. Recently, Vinny Lingham – the CEO of Civic – said that the value of Bitcoin (BTC) will plunge below the $3k level in the coming months before a corrective rally.