At the start of January, most people in the crypto space had high hope for Bitcoin price on the upside trend. However, the latest pullback has made many, especially the newbies, think differently.
Even though analysts have warned that people should not fall prey by selling their BTC holding while the whales are carting in more, people remain scared that $41,000 may the pinnacle for Bitcoin’s post halving bull run.
According to numerous experienced analysts, Bitcoin is bound to experience pull back while on a bull run cycle, hence the over 20% pullback was expected.
While there is still no strong signal that Bitcoin could still break the $41,000 all-time high resistance upward, the whales in the market seem to have a surprise for many.
Bitcoin whales continue to see this point as another good entry-level to make gains when Bitcoin eventually rallies up. Added to that, a report has it that the number of Bitcoin whales in the market is on the rise.
According to data from Glassnode, the big surprise is that while the number of Bitcoin whale continues to increase, Ethereum whales are decreasing in number.
The latest data confirms that the number of addresses with 1,000 BTC or more (circa $37+ million), has surged to 2,425. The figure shows that the number of Bitcoin whales hit a new all-time high. Further statistics shows that it is likely the number keeps increasing.
📈 #Bitcoin $BTC Number of Addresses Holding 1k+ coins just reached an ATH of 2,425
Previous ATH of 2,424 was observed earlier today
View metric:https://t.co/cjV0krRVgK pic.twitter.com/WBiQqXtcSH
— glassnode alerts (@glassnodealerts) January 16, 2021
The record is somewhat encouraging for the market as the number of Bitcoin whale surged by 1 from its previous all-time high. Since Bitcoin whales are large investors of Bitcoin, they have tangible control over the market price of the cryptocurrency. They can easily crash the price of Bitcoin by dumping their assets on the market. Hence, the increase is a good sign for the market.
The increase in the number of Bitcoin whales, however, does not have a positive correlation with the price of the cryptocurrency. While Bitcoin price plummeted from around $41,000 to around $35,000, the number of whales moved from 2,370 to 2,425, thus showing a negative correlation.
Ethereum Whales and Price
Similarly, the trend in the number of Ethereum whales and price are also negatively correlated. Nevertheless, the reverse is the case here. As Ethereum, the second-largest cryptocurrency by market cap, manages with a fairly good price, staying above $12,000 up till the press time, there has been a decrease in a number of whales holding 1000 ETH ($1.2+ million) lately.
The number dropped from 7,007 to 6,985 within 24 hours. Even though the record is quite worrisome, speculations are rife that Ethereum will outperform Bitcoin in the bullish cycle and the cryptocurrency is living up to it.