Bitcoin‘s halving is less than three weeks away, and the anticipation of the massive price increase that is widely expected throughout the crypto market has potentially led to a sharp increase in the number of whales accumulating the first-ever cryptocurrency.
In fact, the number of Bitcoin whales just reached the highest number since December 2017, just as the last batch of whales dumped the asset at an astronomical markup anywhere from $1,000 to $20,000 at the peak.
Glassnode Data Indicates Whales Are Accumulating Bitcoin Ahead of Halving
Bear markets might be painful for the investors who bought the top, but for those who bided their time, the opportunity to buy is too good to pass up.
It’s during downtrends that accumulation takes place, before an asset moves to the mark up phase and the asset’s price rises once whales or smart money investors have sufficiently accumulated a large enough holding of the asset at low enough prices.
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Data shows that this occurred heavily ahead of Bitcoin‘s last bull run, with an increase of high-value Bitcoin whales taking positions following the asset’s halving.
And with Bitcoin’s next halving less than three weeks away, data shows another uptick in whales accumulating Bitcoin, reaching a level not seen since December 2017.
21/ And the view from on-chain is fascinating.@glassnode reports there are now more $BTC whales than at any time since December 2017.
I cannot express how bullish that is. pic.twitter.com/CmnPSvapuQ
— Cole Garner (@ColeGarnerBTC) April 22, 2020
Data Shows Crypto Whales Return to Pre-Bull Run Levels
Following Bitcoin’s last halving and bear market, investors began to take increasingly larger positions in Bitcoin ahead of an expected price increase. Given how bullish the two previous halvings are, whales are accumulating the first-ever crypto asset heavily once again, in hopes of a repeat of the historic bull runs from the past.
Each halving cuts the block reward in half, thus essentially lowering the supply that can be sold into the market, causing an imbalance of supply and demand that eventually leads to price gain.
The last halving took Bitcoin price from lows around $150, t0 as high as $20,000. The amount of whales broke above a key level in early 2016, just as the bull run truly got underway.
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The number of Bitcoin whales remained high until December 2017, when the remaining whales cashed out their Bitcoin holdings at $20,000 – a price just too good to pass up.
After last month’s drop to attractive prices at $3,800, and with the halving just days away, the number of Bitcoin whales has returned to those prior levels, suggesting that another bull market may be just around the corner.
The drop, however, also has caused many crypto investors to fear a deeper drop, especially amidst the coronavirus outbreak, and a looming recession. But they may end up missing out on the greatest opportunity to buy Bitcoin yet.
Featured image from Pixabay