A Small Group of Investors Spent $24.5 Billion on BTC in the Last Few Months
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More than 1,000 wealthy investors have accumulated large sums of BTC over the last three months, wrote Chainalysis chief economist Philip Gradwell yesterday in his weekly market intelligence report.
In the report, Gradwell used blockchain data to analyze the prices at which BTC was bought and held. His analysis considered how long the investor held onto their BTC after they acquired it.
Gradwell found that, when BTC was worth around $54,500, a group of 1,200 investors bought 450,000 BTC for a total of $24.5 billion. The chart below shows how much BTC was bought at different price levels over the past few months.
Gradwell added that these wealthy investors each hold between 100 and 1,000 BTC and have held their coins for between one and three months.
His chart also recorded other significant purchases by whales. At $55,800, an investor or investors bought 229,000 BTC for $1.3 billion. Gradwell noted that this BTC was held on a crypto exchange; BTC held on exchanges is often there to be sold.
The Chainalysis economist argued that the bigger plateau in the chart could create a lower limit for the BTC market. “As the price falls towards their average cost of acquisition I would expect them to buy more, thereby putting a floor under the price,” he said.
Gradwell’s maxim has already fallen through, however, as BTC plummeted below $50,000 last night and has, so far, not resurfaced.
H/T to Unfolded for pointing this story out.
