According to the latest data from CryptoQuant, whales continue to accumulate despite the Bitcoin (BTC) price doubling so far in 2021.
This trend shows that confidence in Bitcoin trying to hold above $ 50,000 is getting stronger.
Why is whales’ trust important?
In bull cycles, whales can make a profit, especially if the futures market gets too crowded.
Whales selling to balance their portfolios can cause large price changes in the market.
Bitcoin Price Index: How much is 1 Bitcoin in TL? (BTC TL)
On-chain data shows that whales are buying rather than selling Bitcoin in the current bull cycle.
CryptoQuant CEO’su Ki Young Ju, stated that:
“Whales are accumulating BTC. They have set up many bear traps lately, but the price has risen to the institutional purchase level of $ 48k. Looking at Coinbase’s BTC outlets, it can be seen that most of these BTCs sent to private wallets are received at $ 48k.”
Whales and high net worth investors may prefer to save rather than take profits because they think a new super cycle will emerge.
Bitcoin did not receive that much attention from institutional investors before the current bull cycle. As central banks constantly increase the money supply and companies seek alternatives to cash, Bitcoin has become increasingly attractive.
Other indicators also show that Bitcoin is far from peaking in the short term.
For example, the output profit indicator (SOPR) shows that investors are already making a profit. This could significantly reduce the selling pressure on Bitcoin in the foreseeable future.