By Shelly Melancon (Switzerland)
There has been an increase in the amount of bitcoin and the number of whales moving them. The bitcoin market saw 254 new wales perform heavy transactions within a few days, signifying that an increasing number of institutions and individuals are purchasing bitcoin in readiness for a stronger bull run after the new crypto ETFs are approved for trading.
This was revealed by data collected by foremost data company Santiment. In their findings, Santiment discovered that the number of bitcoin addresses holding between 100 and 1000 bitcoin surged to high levels within a month, just before the token hit its first ATH in 6 months. The trading volume of bitcoin also increased within this period; the number of outflows experienced a tremendous increase from exchanges.
There are now more whales holding bitcoin than before. On the other hand, the growing number of holders can be attributed to the rapid and large increase in the market capitalization of Bitcoin. The present price movement is being followed by a 40% increase, which is attracting both institutional and retail investors.
The growing number of bitcoin whales might also be connected to the projected increase in the number of publicly-traded ETFs that will be available if the SEC grants approvals within this month. Crypto ETFs have been backed to receive approvals and begin trading on the NYSE. This will further the access that investors have to trade the asset without actually holding.
According to Santiment’s research, the majority of whales survived the recent market correction, with just a small number of significant investors forced to sell their coins. When compared to previous periods, the current growth in the number of whales is considered rapid.
The Bitcoin Frenzy Might Just Be Starting
From indications, the frenzy to get on bitcoin might really just be starting. More investors who have been waiting for a pullback before they invest might decide to buy now while prices are still lower than the projected $100k which is beginning to look like it would happen. Bitcoin formed a strong bullish pattern on the weekly close and has gained momentum which analysts believe will be sustained into the close of the year.
Several bitcoin futures-based exchange-traded funds (ETFs) are expected to launch in the United States in the coming weeks. These products may rekindle interest in the classic “cash and carry” arbitrage method, putting additional purchasing pressure on the spot market.
If Wall Street accepts these ETFs, the futures premium, or the spread between futures prices and spot prices, will rise drastically, increasing yields from the cash and carry strategy, which involves selling and buying futures and options.
Now that the U.S. has become possibly the strongest force in the cryptocurrency industry following China’s ban on crypto trading and its continuous crackdown on miners, it will make sense for whales to begin piling up bitcoin for a possible bull run that may be the result of increased mining activities and crypto ETFs trading in the U.S.
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