The accumulation of BTC is constantly increasing, and it does not matter whether it is small or large players. This factor demonstrates the relatively high confidence of traders in the arrival of BTC on the bullish wave.
Will the long-term growing trend resume?
Ecoinometrics, a company that deals with daily cryptocurrency reporting, came up with a relatively interesting analysis. Their latest report states that there has been a high flow of Bitcoins to whales and retailers’ wallets.
Before the recent rebound of BTC from support at the 30k level, the author from the company Ecoinometrics Nick came up with a statement:
“After several weeks of data collection indicating increasing accumulation, BTC has finally rebounded from the $ 30,000 level.”
As we can see in the picture, the red color indicates a situation in which all groups of traders accumulate their Bitcoins over a period of 30 days. The opposite is the blue color, in which only small players in the market accumulate.
“We can make the same graph for the current cycle and we can observe the exact same state.”
Whales are active
Data from other portals confirm the analysis from Ecoinometrics. WhaleMap has announced that the number of transactions belonging to large whales’ wallets with BTC is growing rapidly. This fact indicates the intention of whales to wait for higher prices.
Fundamental news for BTC
The fact that whales are more active than in the past may be the result of fears of rising inflation, despite efforts by Fed President Jerome Powell. He is constantly pushing questions about rising inflation to the forefront.
At the last conference, Powell admitted that inflation had significantly exceeded their forecasts and that it was said to be only a consequence of the economic recovery following the Covid-19 pandemic.
National economic research has shown that the recession in the US ended according to official data in April 2020. The Fed now faces a real challenge. They must get the economy into harmony as such after a global pandemic that started inflation. Jeffery Wang, head of the US department of Amber Group, also commented on the situation. He talks about the extremely difficult situation for central banks.
“Cryptocurrencies and BTC will still be considered an asset that is volatile but can be a major threat to rising inflation. In such an environment, cryptocurrencies should thrive. ”