The number of addresses with more than 10,000 BTC rose to last August
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| The number of addresses with more than 10,000 BTC rose to last August |
Amid the pre-halving price recovery, whales appear to be actively accumulating digital gold.
The graph from Glassnode shows that the number of addresses with 10,000 BTC or more on Wednesday reached 111, the highest since early August 2019. Since the beginning of March 2020, the number of largest bitcoin addresses has grown by 11%.
“__ The increase in the number of addresses with more than 10,000 BTC is most likely due to the fact that long-term holders are returning online to increase their reserves,” said Matthew Dibb, co-founder of Stack cryptanalytic service .__
Thus, it is possible that the growing interest in digital gold from the whales is due to the revival of the cryptocurrency market on the eve of halving and the factor of global instability.
“Some of these addresses may belong to very wealthy individuals or groups of individuals using Bitcoin to diversify amid the ongoing pandemic of the coronavirus and in anticipation of a mining award halving,” said Interlapse Technologies CEO and Coincurve founder Wayne Chen.
Based on historical data, as well as the laws of supply and demand, many investors expect an increase in the price of the first cryptocurrency after a halving, which will take place on May 12. Halving the block reward will make Bitcoin an even more scarce asset, whose quotes will grow with constant or growing demand.
“A year after the first halving in November 2012, the price rose from $ 11 to over $ 1,100. Then, after the second halving in July 2016, bitcoin grew from $ 600 to $ 20,000 by the end of 2017, ”said George McDon, co-founder of KR1 investment company, observing.
On the other hand, it is likely that many relatively inefficient miners will be forced to leave the industry due to a sharp drop in the profitability of operations. This threatens to drop the hashrate of the first cryptocurrency network.
In addition, many will sell almost all of the extracted assets in the hope of an increase in the price of BTC, which will give a chance to keep the business. Massive sales to cover the costs of miners can become a stable source of pressure on the price of digital gold.
It is also worth noting that many of the above addresses may belong to large exchanges that control huge volumes of assets. Therefore, the dynamics of the number of such addresses cannot be unambiguously perceived as an indicator of changes in the behavior of long-term investors affecting the price of BTC.
Recall that many market experts are confident that small miners will either quit the game or be absorbed by larger and more efficient players after halving.
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