Bitcoin’s whale watching record
Whale growth occurred amid the Bitcoin boom in 2020, a move closely monitored by business.
The number of Bitcoin portfolios with more than 1,000 currencies, the so-called whales, reaches a record in 2020. At the same time, the number of portfolios with five Bitcoins has also grown, showing that large investors may be buying the currency.
The movement of these whales is closely followed by the community. This is because, with the ability to affect the price of the Bitcoin, whales are considered the largest investors. One of the tools that tracks these movements, for example, is Whale Alert.
Thus, an important movement detected in the last few days may have been the accumulation of whales. With more Bitcoin addresses accumulating large amounts of coins, the movement tends to be optimistic.
The information was published by a Chainalysis market report.
Bitcoin Whale Portfolios reach record high in the middle of a pandemic
Considered by many to be a refuge asset, Bitcoin appreciated greatly in 2020. In relation to the Brazilian Real, for example, since January Bitcoin has valued 211%, with each unit quoted at R$ 90 thousand.
The movement may have been impacted mainly by the purchase of Bitcoin by large companies. Even so, another important indicator is the number of Bitcoin portfolios with more than 1000 currencies, that is, how many whales there are and what they are doing.
According to Chainalysis trade data, 2,052 Bitcoin whale portfolios emerged in 2020. During the year, the increase was 302 portfolios, 17% compared to 2019.
Chainalysis would have reported this increase in a report to the market. The Coindesk website commented that the increase in the number of whales for the year contrasts with the adoption of the currency.
Analysts noted that the number of portfolios with more than five bitcoins also increased. In other words, the number of addresses with more than one bitcoin has risen, showing high adoption of the currency by large investors.
Less liquidity in cryptomaniac brokers
Many investors followed Bitcoin’s rise in 2020 closely and seized the moment. But with more Bitcoin portfolios accumulating most currencies, less liquidity was seen at the brokers, Coindesk said.
In fact, the volume of Bitcoin fell in the last seven days compared to the end of November, according to data from CoinMarketCap. This fact could prove the moment of accumulation of whales.
With the recent fall of Bitcoin, analysts fear that the whales will deposit their coins back for sale. Even so, some analysts believe that the recent fall of Bitcoin, which lost $18,000, may be temporary.
With market fears, some investors would have settled currencies, but it may only be a temporary correction. If it stays longer, the whales could return selling their currencies. This is a fear for optimists, however, there are no clear signs that indicate the movement.
MicroStrategy, one of the whales that emerged in 2020, is preparing to buy an additional $550 million Bitcoin. In other words, it is not clear whether the price of the Bitcoin will continue its decline or whether it will rise again at the brokers soon. At times like this, it is important that investors strengthen risk management.