Volatility indicates the beginning, not the end, of a bullish market cycle as portfolio numbers of over 1,000 BTC reach new highs.
Bitcoin Whales are betting that $40,000 is not the top and the bullishness is just beginning MARKET NOTICS
Bitcoin (BTC) whales expect massive price increases in the future, as the number of portfolios containing more than 1,000 BTC ($35 million) reaches an all-time high.
Data from the Glassnode on-chain analytical resource confirm Bitcoin Pro that on January 20th, there were more than 2,400 portfolios with a large backlog of Bitcoin.
Whale Watching Records
In 2021 alone, 164 new entities with over 1,000 BTCs were created, together they now control about $6 billion. While this may not mean whales increasing their positions, the numbers feed an existing narrative of wealth transfer that characterized Bitcoin’s latest boom.
As reported by the Cointelegraph, portfolios with over 1,000 BTC were the only category to increase in recent times. The number of small-budget portfolios has been falling recently.
While some have appealed to hodlers not to sell themselves to whales, others argue that these big newcomers will aggressively protect the value of their investment.
„Large flows for whale wallets were happening at $29,314. They will be protecting their btc … This should be strong support for bitcoin in the short term, and hopefully in the long term,“ whalemap said on Twitter this week.
Bitcoin wallets with 1,000 BTC or more. Source: Glassnode
The Bitcoin remains at a crossroads in terms of spot market price action, trading in the corridor between $30,000 and $40,000 throughout the week. At the same time, institutional giant Grayscale unveiled its largest one-day buy-in, totaling over 16,000 BTC worth about $700 million.
„Strongest part“ of the bullish market has yet to begin
Looking ahead, however, the indicators continue to show extreme bullish potential for the BTC/USD.
After the Bitcoin thermocap pointed out that Bitcoin could be in the early stages of a bubble configuration, volatility now suggests that the market is just starting to gain. A benchmark, suggests macro investor Dan Tapeiro, appears to be the beginning of 2017 – the beginning of almost a year of upward trend.
Bitcoin/ S&P 500 vs. BTC/USD Volatility Chart. Source: Bloomberg Intelligence/ Dan Tapeiro/ Twitter
„Phenomenal chart. Strong part of the #bitcoin upwards movement has not yet begun. The chart suggests that we are in the Q117 equivalent period“, he commented when sending a combined chart of the 90-day Bitcoin volatility versus the 260-day S&P 500 volatility.
„The measurement of volatility peaks at the end of the moves … now still close to the lows. It is interesting to think that #btc can rise 5-8x by 2021. Better just do #HODL“.