Volatility is the latest indicator to call the start, not the end, of a
bull market cycle as 1,000+ BTC wallet numbers spike to new highs.
Bitcoin (BTC)
whales clearly expect massive price rises in future as the number of
wallets containing over 1,000 BTC ($35 million) hits an all-time high.
Data from on-chain analytics resource Glassnode confirms that as of Jan. 20, there were in excess of 2,400 large-balance wallets.
Whale wallets hit record highs
In
2021 alone, 164 new 1,000+ BTC entities were created, together
controlling around $6 billion. While these may not all denote whales
increasing their positions, the numbers feed into an existing narrative of wealth transfer which has characterized Bitcoin's latest bull run.
As Cointelegraph reported,
the 1,000+ BTC wallet category was the only one to increase in recent
times, with smaller wallet holder numbers conversely dropping.
While
some appealed to hodlers not to sell out to whales, others argue that
these newly-minted big players will aggressively protect the value of
their investment.
"Large inflows to whale wallets were happening
at $29,314. They will be protecting their btc... This should be strong
support for bitcoin in the short term, and hopefully long term,"
monitoring resource whalemap summarized on Twitter this week.
Bitcoin
remains at a crossroads in terms of spot market price action, trading
in a corridor between $30,000 and $40,000 throughout the week. At the
same time, institutional giant Grayscale unveiled its largest-ever one-day BTC buy-in, which totalled over 16,000 BTC worth around $700 million.
"Strong part" of bull market yet to start
Looking ahead, however, and indicators continue to reveal extreme bullish upside potential for BTC/USD.
After Bitcoin's thermocap
pointed to the price being in the early stages of a bubble setup,
volatility now suggests that the market is just getting going on its
gains. A reference point, macro investor Dan Tapeiro suggests, seems to
be early 2017 — the start of almost a year of uptrend.
"Phenomenal
chart. Strong part of the #bitcoin upmove has not started yet. Chart
suggests we are in Q117 equivalent time period," he commented uploading a combined graphic of Bitcoin 90-day volatilty relative to S&P 500 260-day volatility.
"Volatility
measurement spikes at end of moves... now still near the lows. Hard to
think #btc could 5-8x from here in 2021. Best to just #HODL."
source link : https://cointelegraph.com/news/bitcoin-whales-are-betting-40k-isn-t-the-top-as-data-hints-bull-run-is-only-beginning
