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Bitcoin at $40K As Whales Eat into Retail Investors

February 6, 2021 at 11:58 by Ibrahim Anifowoshe

In the last few days, the pioneer cryptocurrency has been bullish. Today, it made a solid move towards $40k. At 11:20 GMT, the cryptocurrency was trading at $40,389, a 7.4% gain in the last 24 hours. Its market cap stood at $749.6 billion.

Over the last week, Bitcoin added almost $6,000 to its price in a catch up game with Ethereum. ETH, earlier today, hit a new ATH of $1,750.

As the king cryptocurrency closes on new highs, the whales have been eating into retail investors holdings over the last few days. Holders with 10–1,000 BTCs, which are mid-tier addresses, have resolved to go profit-booking in the last few days. However, Whales with over 1,000 BTCs have continued on an accumulation spree. Interestingly, the rally has triggered a FOMO among small and mid-tier players according on-chain data provided by Santiment.

Santiment noted on Twitter:

The whales of #Bitcoin (1,000+ $BTC addresses) haven’t stopped accumulating, while the mid-tier traders (10–1,000 $BTC) haven’t stopped taking profit as its price hovers around $38,000. Meanwhile, the small addresses have been #FOMO‘ing back in rapidly!

It was reported earlier in the week that Whale addresses with over 1,000 BTCs have, for the first time in history, surpassed mid-tier addresses. As the exchange supplies continues to drop, the big players have continued to accumulate more BTC. Then, moving their accumulated BTC into cold storage.

Coinbase Pro exchange see massive outflow

On Friday, February 5, Coinbase Pro exchange saw an outflow of a whooping 15,000 BTC. This is following large OTC deals on the platform. This is the second time since 2020 that 15k Bitcoin has been moved out of the exchange in a single transfer.

maasive coinbase outflow

However, Glassnode founder “Yann and Jan” reported that 78% of the BTC supply is either HODLed or lost. This means that the liquid supply of Bitcoin is drying up faster than ever before. They mention that only 4 million will be available for future market entrants. With institutional players like PayPal and Square coming into the market, the supply may dry up faster.

Yann and Jan mentioned:

Float in the network is drying up faster than ever. Currently about 78% of issued $bitcoin’s are either lost or being hodled, leaving less than 4M bitcoins to be shared amongst future market entrants (incl. Paypal, Square, SP500 Companies, ETF’s, etc).

Additionally, on Friday too, Twitter CEO, Jack Dorsey made a twitter post announcing that he now owns a complete Bitcoin node. This means that he can now process transactions and add new blocks to the network.

With tech industry giants in the market, the positive sentiment of Bitcoin will continue to soar.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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