Whales continue to accumulate Bitcoin (BTC) despite the price more than doubled so far in 2021, according to the latest data from CryptoQuant.
This trend indicates that confidence in Bitcoin is strengthening, andas the price is now trying to stabilize above the $ 50,000 level.
Why Whale Trust Matters
During bull cycles, whales can profit from their positions, especially if the futures market is very overcrowded.
Whales selling their holdings to rebalance their portfolios can cause massive price swings in the market, especially when they are accompanied by cascading liquidations.
In this bull cycle, the chain data shows that whales are buying bitcoin instead of selling it, probably in anticipation of more benefits in the future.
Ki Young Ju, CEO of CryptoQuant, He said:
“Whales accumulate $ BTC. They are cheating a lot lately, but the price seems to regain the institutional buying level, 48k. Looking at recent Coinbase exits, most of the exits that went to custodial portfolios were priced at 48k “.
Whales or high net worth investors could be hoarding Bitcoin instead of profiting from their positions because they might believe that a supercycle might be emerging.
Bitcoin has not had as much institutional interest before the current bull cycle, particularly coming from publicly traded companies and financial institutions.
Bitcoin is becoming very attractive in an environment where the continued expansion of the money supply by central banks is forcing some companies to look for alternatives to cash.
What’s more, William Clemente, an analyst, it also points out that the directions of accumulation are increasing, indicating another “wave” of accumulation.
– William Clemente III (@WClementeIII) March 3, 2021
Macro factors are lined up for a Bitcoin rally
As it explains Leeor Shimron from Fundstrat, Bitcoin still has plenty of room to execute when the price of the M1 currency is set.
Shimron said that Bitcoin’s Cycle Could ‘Get Very Wild’, which suggests that BTC is far from reaching full potential.
“The price of Bitcoin on the M1 currency stock is still a long way from its ATH. In the face of unprecedented money printing, the bull market may be just starting. This cycle could get very wild.”
There are several other metrics that suggest that a Bitcoin ceiling is likely far from being reached anytime soon.
For example, the SOPR indicator, which measures the profit-taking activity of investors, shows that many investors have already made a profit from their positions.
In the foreseeable future, this could reduce significant selling pressure on Bitcoin, which coincides with the fact that whales continue to buy the circulating supply of Bitcoin.
Raoul Pal, the CEO of Real Vision Group, shared a similar sentiment. He said that Bitcoin would absorb most of the world’s capital over time. He He said:
“But it really suggests that investments in technology and most of all Bitcoin (and I assume ALL digital assets) will continue to absorb all of the world’s capital, over time, as people realize that it is the most efficient to generate wealth in excess of its store of value