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Bitcoin’s Rally to $48,000 Was Exclusively Driven by Whales

February 10, 2021 at 14:07 by Mark Stevenson

The price of the flagship cryptocurrency, Bitcoin (BTC) spiked above $48,000 on February 9 and has been consolidating ever since. Analysts at Material Indicators suggest that Bitcoin whales were behind the surge and this is usually considered a bullish signal.

When retail investors enter the market in droves, the possibility of a Bitcoin top would increase, as both the derivatives and spot markets overheat.

Why are Bitcoin whales raising the price up?

In the past few months, the whales sold bitcoins in large amounts in the price range of $33,000 and $40,000. Orders who were selling between $1 million to $10 million increased significantly across popular crypto exchanges, including Binance.

However, Bitcoin whales again increased their BTC purchases as the price rose above $33,000 after the $40,000 correction.

According to analysts at Material Scientist, Bitcoin whales have been showing unusually large volume, close to $150 million in the past 24 hours. This is an indication that whales are steadily hoarding Bitcoin in the wake of the news that  Tesla bought $1.5 billion worth of Bitcoin. The analysts stated:

And finally, the whales are still driving all of this and have increased in a big way. Why has the blue gone so high? Because the whales have an unusually large net income volume ($150 million in the last 24 hours). Usually they only make up a small fraction of total CVD, but now they are the majority. So this move to $50k was driven almost exclusively by whales.

Bitcoin whale CVD data

Many analysts believe that the craze around publicly traded companies purchasing Bitcoin creates positive market sentiment around the premier cryptocurrency.

In the current economic environment, shareholders would likely demand that companies secure exposure after Tesla eliminated the risk of holding Bitcoin, a Bitcoin trader who goes by the name Filbfilb said.

Furthermore, the CEO of Real Vision Group, Raoul Pal also stressed that Bitcoin is still early in its upward trend.

Read also: Bitcoin Seems to Be Moving Toward Uncharted Territory

Regarding widespread awareness, casual investors generally still have a low level of awareness of Bitcoin. Notably, many retail investors rushed to buy Bitcoin in 2017. Pal explained that only 2 of his oldest and best friends owned Bitcoin for 12 years and he has persuaded them for a year. Conversely, his yoga teacher keeps asking him to make payments in Bitcoin.

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

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