The data show that bitcoin whales do not intend to sell at current prices

The Great Bitcoin (BTC) whale, which holds 68,000 BTC ($ 523 million), has not shifted funds for more than five years, and chain data shows that other whales have similarly held their BTC for an average of 4.7 years. Bitcoin is the highest cryptocurrency by capitalization on CoinMarketCap. The whales that hold this digital asset without selling for the years suggest that they are optimistic about Bitcoin’s long-term prospects. The data show that many whales are still holding BTC, although there is a risk of a significant decline in the multi-annual support area of $ 3,000 to $ 4,000.

How do whales accumulating BTC affect the market?

Since 2015, the infrastructure supporting the cryptocurrency market has improved exponentially. More and more trusted trustees are opening up, more futures are available and there are large regional stock exchanges supported by stable banking services.

Retail and institutional investors are actively accumulating bitcoins after intensive corrections. An analytical report released by Coinbase expects that after a trip to $ 3,750 in March, retail investors are immediately bought.

Data from the Grayscale report for the first quarter of 2020 showed that there was a significant increase in demand for Bitcoins from institutional investors.

As more investors accumulate Bitcoins, BTC’s circulating offer is declining, which may weaken major market declines. Over time, it is possible that the correction phases will be weaker and faster as bitcoin gradually approaches the fixed cap of 21 million.

In addition, whales and other long-term holders may consider Bitcoin to be the best asset to hold in the long run due to the fact that lost funds are not recoverable, coin supply is limited and halving reduces the extent to which BTC’s new offer is marketed.

Although there are only 13 days left until the halving, there is still the possibility that BTC could see a serious decline, regardless of the whales’ reluctance to sell their assets. However, their optimistic attitude in the near future reduces the probability of a capitulation decline.

Did BTC’s “real price” fall below $ 4,000?

Just 24 hours after Bitcoin fell to $ 3,600, the price rose again to $ 4,000 and eventually returned to $ 7,000 within a month. The sharp decline from $ 8,000 to $ 3,600 was due to the liquidation of futures across crypto exchanges, primarily BitMEX, not the sale of whales.

The movement of Hodlers confirms the validity of the theory that BTC should never fall below $ 5,000 in the first place and investors who have bought between $ 3,000 and $ 4,000 are unlikely to sell immediately.

You should be interested in: McDonald’s, Starbucks and Subway are among companies testing Chinese digital currency