Bitcoin Whales Stack BTC Amid Lower Volatility

Bitcoin Whales Stack BTC Amid Lower Volatility

Key Insights

  • Bitcoin whales are amassing BTC quicker than normal investors.
  • The Accumulation Trend Score for Bitcoin is at an all-time high. This suggests that the price action is being supported by whales, retail investors, and ordinary HODLers alike.
  • MicroStrategy has recently announced another $347 million purchase of 12,333 BTC.
  • After all, TUSD may be fueling Bitcoin's gains. This shows that institutional investors may be using TUSD to purchase BTC without having to worry about the crypto market's volatility.
  • The entire cryptocurrency market is pretty robust and stable. However, it is critical to monitor whale behaviour and institutional investment in Bitcoin.

Despite small dips throughout the price charts here and there, BTC has managed to stay above the $30,000 zone as of writing, on Thursday this week.

This happened while some of the other top cryptocurrencies like Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Litecoin (LTC), and Solana (SOL), landed in the reds with slight dips.

At the time of writing, the worldwide crypto market valuation was $1.16 trillion, after taking a 1.13 percent drop in 24 hours.

From the above, it is safe to say that the crypto market is still relatively stable, and is holding its ground.

However, it appears that despite the current market conditions, the Bitcoin whales may be stacking massive amounts of BTC, in anticipation of something big.

Bitcoin Whale Accumulation Score Explodes

Reports suggest, whale activity has been relatively stable in the recent months, with no major spikes or dips.

However, there are some signs that whales may be accumulating BTC at a faster rate than retail investors (Shrimps). This suggests that the whales may know something the average person doesn't and may be expecting the price of Bitcoin to rise in the future.

If anyone has been around for the better part of the Bitcoin bull markets, explaining the importance of the whales may be going too far.

These addresses holding 1,000 – 10,000 Bitcoin basically control the market, and their accumulation rates have a direct effect on whether Bitcoin goes up or down.

Historically, these addresses have been observed accumulating Bitcoin right before, or during a massive Bitcoin breakout.

And it turns out that over the last 90 days, 1k to 10k BTC whale addresses have amassed more than 130k coins.

Bitcoin whale and small fish accumulation rates | Source: <a href='' target='_blank' rel='noreferrer noopener'>Ecoinometrics</a>
Bitcoin whale and small fish accumulation rates | Source: Ecoinometrics

These addresses also appear to have bought these right out of the shrimp and small fish's pockets. At the same time, retail investors have also continued to amass Bitcoin at a reasonable rate.

According to Glassnode, the Accumulation Trend Score is a metric that tracks how much BTC is being accumulated by whales.

A higher score means that more whales are accumulating BTC, which is seen as a bullish sign, while a lower score means that large investors are selling Bitcoin, which is seen as a bearish sign.

A score of 1 means that all the whales in the market are accumulating BTC, while a score of 0 means that no whale is accumulating BTC.

As it turns out, BTC now has an accumulation score of 0.73, which is historically high.

This means that the whales, retail investors and regular HODLers are being very supportive of the price action.

And speaking of institutional investment:

MicroStrategy Purchases $347Mn BTC

It turns out that BTC may soon see an increase in institutional investment. This is because MicroStrategy just announced another buy of 12,333 BTC for $347 million. This is a major step, because it may indicate to other institutional investors that Bitcoin may not be so bad of an investment after all.

Because of regulatory uncertainties, institutional investors have been unwilling to invest in BTC in the past. However, things are starting to improve, making it simpler for institutional investors to want to jump on the bandwagon.

If MicroStrategy's BTC purchase triggers a wave of institutional investment in Bitcoin, the cryptocurrency's price may improve.

The price of BTC has been largely stable in recent months, but this significant injection of institutional money might send the price skyrocketing.


Bitcoin's Rallies May Be Fueled By TUSD Afterall

According to a tweet from the head of research at CryptoQuant, JJC Moreno TUSD may have a bigger importance to the crypto market, than anyone expected.

The analyst noted that while there was a big increase in the market cap of USDT during Bitcoin's initial rally to the $30,000 zone, the last BTC rally appears to have been fuelled more by TUSD.

USDT and TUSD stablecoin market cap change, versus BTC price
USDT and TUSD stablecoin market cap change, versus BTC price

Overall, the takeaway from this is that Bitcoin's rallies may be fueled by TUSD. This suggests that institutional investors may be taking advantage of the issues with TUSD and its constant de-pegging, to buy BTC without having to worry about the volatility of the crypto market.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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