Re: Does the increase in whale holdings indicate that the market is bottoming?
Glassnode data shows that the supply of Bitcoin held by whales increased by more than 80,000 to 4.216 million BTC last Friday, reaching the highest level since May. Since the collapse of the Bitcoin 519 incident, the trading volume of cryptocurrencies has been declining, especially the trading volume in June fell 56% compared to May.The sharp decline in trading volume indicates the decline in market activity and at the same time adds more uncertainty to the market.
Although the short-term market will be subject to various influences and risks, the mid-to-long-term trend is still relatively promising, especially the recent increase in Bitcoin holdings by whales to ensure the bottom of the market and promote the rise. The re-accumulation of whale entities is good news for the market. The amount of bitcoin held by whale entities rose in tandem with the price during the bull market. Therefore, does the recent increase in the number of bitcoins held by whales indicate that the market may have bottomed?
Although the short-term market will be subject to various influences and risks, the mid-to-long-term trend is still relatively promising, especially the recent increase in Bitcoin holdings by whales to ensure the bottom of the market and promote the rise. The re-accumulation of whale entities is good news for the market. The amount of bitcoin held by whale entities rose in tandem with the price during the bull market. Therefore, does the recent increase in the number of bitcoins held by whales indicate that the market may have bottomed?
It is easy to forget that billionaires and companies like Paypal have bucketloads of excess cash that they don't have anywhere to put. Bitcoin can be seen as a punt for billionaires but a massive selling opportunity for something like Paypal. It would make sense for a company like Paypal to continue buying up as much inventory of Bitcoin as their users can fund - they will hold none of the risk but can effectively stunt the growth of a competing money transfer ability that will be taking a cut of their revenues each year it continues. The only thing holding them back from direct investing it probably the multitude of other cryptocurrencies that they cannot predict will eventually replace Bitcoin.