The number of Bitcoin whales has increased at a rapid pace in the last few months, as per data analysts, which could suggest the beginning of a new bull run.
According to data from BitInfoCharts, which is a resource showing the addresses holding the most Bitcoin, the number of investors holding more than $1,000 Bitcoin has increased to over 2,000. It appears that this trend of whales investing in the sector started around March of this year.
This could be ascribed to the period in which the global economy started to take a knock from the global health crisis and national lockdowns, as well as the Bitcoin price dropping to around $3,600.
Is Bitcoin About to Rally?
Whatever is the case, the outcome is that big investors are now interested in purchasing, and perhaps also holding on to the king coin. As record trends have shown us in the past, when whale investors reenter the sector, it is usually an indication of a new rally.
In the last six years, when whales exited or sold off their tokens, the price of Bitcoin has started to dive. On the other hand, when large investors start investing in Bitcoin, the price grows increasingly and rapidly.
Moreover, in spite of the volatility of the crypto coin, there has been a recent healthy incline in price and trading volumes, and most users have reported a positive view of the market now, which is yet another sign of a feasible bull run in the near future.
As indicated by Glassnode, there has also been a growth in addresses that have been active but have not been trading Bitcoin.
There are over 500,000 #Bitcoin "accumulation addresses" holding a total of 2.6M $BTC (~14%)
Accumulation addresses:
– have 2+ incoming txs
– never spent BTC
– were active in the past 7 years (accounting for lost coins)
– exchanges & miners are excludedhttps://t.co/Q57xouw6eH pic.twitter.com/lWZngWfj8p— glassnode (@glassnode) August 25, 2020
The hoarding of the king coin, whether via big investors or casual, active traders, suggests that the mass adoption of Bitcoin and, for that matter, cryptocurrency as a whole, might not be far off.
