The number of BTC whales is on a new record high.
At the world’s most valuable crypto market, the number of large entities, or whales has been on the rise since Bitcoin broke the $10,000 mark. Data seen from Glassnode revealed the number of Bitcoin addresses (2,200) with balances over 1,000 $BTC ($11m) hit a new record high, a trend that signals accumulation.
Bitcoin addresses with balances over 1,000 $BTC (~$11m) hits a new record high, a trend that signifies accumulation
— Unfolded (@cryptounfolded) August 23, 2020
Why you should know BTC whales
In the Bitcoin world, investors or traders who own large numbers of Bitcoins are typically called Bitcoin whales. This means a Bitcoin whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
As BTC whales accumulate BTCs, Bitcoins circulating supply reduces, and this can weaken any bearish trend BTC finds itself in. This means that over time, it’s possible that as Bitcoin approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.
Whales could be anticipating a strong medium to long-term Bitcoin price trend, and are choosing to hold on to BTC in expectation of a bull market.
Where did all these new whales come from?
Much of the recent increase can be attributed to wealthy entities withdrawing their BTC from exchanges. Apparently, this is not new wealth – rather, it represents a change in the way Bitcoin whales are choosing to hold their coins.
From a macro level, this increase in the number of BTC whales can be considered bullish.
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At the time this report was drafted, Bitcoin was still trading around the $11,000 support levels, as investors have kept buying BTC at its support levels recently.