Bitcoin is trading close to $12,000 and may soon break above it, claim analysts. The new on-chain data published by the Glassnode reveals that addresses which are holding over 1,000 BTC reach a new all-time high.
On-chain data provider Glassnode shared a graph over Twitter and said BTC addresses having more than 1,000 Bitcoin witnessed new all-time high. Last time, all-time high observed on 27 September 2019 when numbers reached 2,191, but this time, the figure reached 2,193.
BTC Accumulation by Whales
It is not a surprise because many analysts claimed in the past that whales were busy in accumulating the top digital asset. More and more institutional investors are entering the crypto world after getting disappointed by the Fed’s money printing. Grayscale has witnessed record growth in the first and the second quarters.
When the price was standing between $9,000 and $9,300, some members of the crypto ecosystem said Bitcoin had got stability nature instead of volatility. But after the recent crash, we had found again high volatility in the top digital currency. Now, one can also observes stable nature of Bitcoin as it is trading between $10,500 and $11,000. According to some analysts, here stability means that whales are accumulating BTC which will result in a bullish breakout.
Hedge against Inflation
When inflation goes up, investors normally invest in those assets which act as strong hedge against the devaluation of fiat. Currently, investors are in the same state due to COVID-19 and are finding hedge investment products. In this time of economic uncertainty and changing circumstances, precious metals- including gold and silver- and Bitcoin are performing outstandingly.
Global Macro Investor Raoul Pal believes that Bitcoin is the best hedge against inflation out of all. Pal said:
“In fact, only one asset has offset the growth of the G4 balance sheet. It’s not stocks, not bonds, not commodities, not credit, not precious metals, not miners. Only one asset massively outperformed over almost any time horizon. Yup, Bitcoin.”