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September 25, 2020
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Bitcoin

Bitcoin whales turn into hodlers in anticipation of a possible rally

Number of Bitcoin whales has increased after the market crash in March this year

Cryptocurrency investors were eager to trade in a bull market, however, what can be seen at the moment is that the market is consolidating. With the biggest digital asset, Bitcoin jumping between its immediate resistance and support, traders saw it as an opportunity to continue dodging until the price goes up.

Regular traders, however, were looking at BTC whales to spark some movement in the market; however, current trends indicate that even miners have moved into the field of hodling.

The Bitcoin whale population had peaked in 2016 and was on the decline until the recent reversal. Since the beginning of 2020, the whale population has increased again and, according to the Dice collected by data provider Glassnode, the number reached more than 1800. If the trend continues, the number of whales in the market could exceed the previous high.

Much of this growth coincided with the withdrawal of BTC from exchanges, noted a report recent Glassnode. This suggested that whales may be the reason for this exodus.

Source: Glassnode

This trend was confirmed by the large increase in the proportion of whales withdrawing from exchanges after the sudden March crash.

Bitcoin whales turn into hodlers in anticipation of a possible rally 25

Source: Glassnode

This caused Bitcoin balances on exchanges to fall, and it can be noted that the fall that occurred in March was an opportunity for whales to sink in and then withdraw BTC for another bullish move.

As the expectation for the bull run increases, the offer of BTC has been increasing. According to the data, the active supply of BTC in the period of 2 years reached a 5-month high of 3,270,781,289 BTC. This increase in the supply of Bitcoin highlighted a similar trend occurring during the 2017 and 2019 rallies. recent findings from the Stack Fund, this increase in active supply tended to peak between 60 and 90 days before a new price rise in the BTC market.

Source: AMBCrypto

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