The past few months have been truly desperate for Bitcoin fans. Prices were dropping faster than a speeding bullet, and Bitcoin investors suffered a lot. However, those who were smart to buy the dip are already reaping the rewards of Bitcoin’s recent rebound. After testing the $50,000 mark for weeks, Bitcoin finally topped it a couple of days ago.
It came as a positive sign for investors. Bitcoin hit $50,000 for the first time in 3 months, and the 200-day moving average showed that bulls are still in play. More importantly, whales have jumped back into the market, and more are continued to join as the price continues to recover.
Whales Linked to Prior Price Action
For those unaware, the term whales describes Bitcoin holders with over $50 million in their accounts. These investors aren’t just known for their crypto wealth – the Bitcoin accumulated by large investors is related to the medium-term BTC price change. To put it bluntly, these guys impact the price just as much as anything else.
Whale activity has been linked to price changes earlier this year. They were a driving force behind the price rise in February. As whales acquire more and more digital assets, prices typically go up in around 28 days. When they start selling for whatever reason, prices drop. Last week, there was movement on the buy market, sending Bitcoin’s price flying toward $50K which it eventually topped.
At the beginning of 2021, whales were big sellers. However, with the early March price drops, they started selling off. That peaked in April which coincides with Bitcoin’s major price drops. Between June and August, whales have acquired around $10 billion in Bitcoin. Holdings are currently in line with February levels, which shows how whales control the market. The great news about the crypto market is that they are long-term holders, retaining over 75% of the Bitcoin assets they buy.
A Steady Climb Up
For the past few weeks, Bitcoin has been on a serious climb which began in mid-July. The market value has surpassed $2.2 trillion, showing positive signs of recovery. The $2 trillion mark was passed earlier in August and there’s no signs that it’s stopping soon.
Of course, price swings are expected to continue. Bitcoin hit the $50,000 mark and topped it a few days ago, and it’s not showing signs of stopping anytime soon. According to experts, this is the start of the push we’ve all been waiting for, and may put Bitcoin on the $100,000 trajectory or higher.
High Bitcoin prices have also dragged other coins with it. Ethereum’s price is on the upside, and other altcoins have benefitted from Bitcoin’s price rise. It’s all connected to the movement of BTC whales, and as long as they continue buying and holding, we can expect the prices to rise.
Interest in cryptocurrencies has never been higher, and it seems that Bitcoin and others are benefitting of it nicely. With the price rise expected to continue soon, it would be no wonder if Bitcoin breaks new records in the coming months.