According to a recent report released by Bloomberg a few days ago, Bitcoin whales are starting to move their coins once again. Some of these whales haven’t moved their coins for long periods of time. Could these movements affect Bitcoin’s price in the near future?
Bitcoin Whales Moving Funds Again
According to data provided by the crypto startup Flipside Crypto, a high number of long-inactive Bitcoin holders started to transfer their coins. Flipside is a company that is backed by Coinbase and the venture capital firm Digital Currency Group (DCG).
Long-inactive Bitcoin holders are users that have not transferred their Bitcoin for the last six and thirty months. Now it seems that some of these users are starting to move their funds again. According to Eric Stone, the supply of active Bitcoins has grown 40% since summer 2018.
How could this affect Bitcoin’s price is one of the main questions that analysts ask and try to answer. As Bloomberg reported, similar wallet movements preceded Bitcoin’s price volatility in 2015 and 2017.
David Balter, the CEO of Flipside, explained that long-time holders that remained outside the market during the lasts periods of volatility are now active once again. He went on saying that there is no reason for this trend to stop. The report shows that there are around 1,000 wallet addresses controlling 85% of all the Bitcoins available in the market.
There is another report presented by Delphi Digital in which they show that the market could be entering a new period of accumulation. In order to say this, the company analysed Bitcoin UTXO explaining that the number of coins stored without being moved is growing.
Using these two reports, it is possible to see that there are old wallets that are moving their funds. That means that they might be prepared in case Bitcoin falls lower in case they need to sell and shield some earnings. However, there are other holders that are currently accumulating more Bitcoin and are waiting for the next bull run.
In general, when periods of accumulation begin, the market bottoms and starts to steadily grow. Since Bitcoin’s all-time high in 2018, the network is in a bear market. There are some analysts that believe that the most popular digital asset could even continue falling and reach $3,000 or less.
At the time of writing this article, Bitcoin is being traded around $3,675. Additionally, it has a market capitalization of over $64.1 billion.
