With Bitcoin Supply Reaching a Decade All-Time High

With Bitcoin supply reaching a decade all-time high, Bitcoin whales buy more BTC at the $38k price mark. This week, recent data revealed that a large number of investors have already been activated by the sudden rise of Bitcoin wallet price to $38,000. Analyzing the behavior of whales, On-chain surveillance resource Whalemap has shown that there has been a series of accumulation at the $36,000 region. After accumulation what comes next? A big wave or trend.

With Bitcoin Supply Reaching a Decade All-Time High
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Bitcoin whales according to Investopedia are entities or individuals that hold a substantial amount of Bitcoin (BTC) in their wallet. 40% of the market is owned by approximately 1,000 individuals. Whales have a great influence on the market, and the currency valuations can be manipulated by them. The ripple effect is created by whales that impact the tokens of other investors. By decreasing or increasing prices, they can turn the tide of the market in their favour. Tfavors caused crypto traders to pay close attention to whales' movement.

Recently, it was reported by the telegraph that based on the industry's data, $80 billion or 13% of bitcoins rests in the accounts of over 100 individuals. However, out of 100 million accounts in total, an identified account of about 2,500 holds 40% of Bitcoin which is around $240 billion.

According to a report by The Sun, a single trade made by whales can affect bitcoin's price hugely thereby washing out smaller investors' movement.

How do whales manipulate the market?

● Creation of sell wall effect

What whales basically do is to set a huge sell order of their crypto assets below the majority's sell order. This causes volatility and price reduction of the coin. When this happens, smaller investors begin to panic and thereby sell their tokens at a lower price. This gives the whales more power to buy at a much lower price.

● Capitalizing on FOMO (fear of missing out)

In contrast cell wall effect, whales can as well inflate the price of a token by setting a huge buy order. They boost people's desire for the token thereby making them increase their bids. With that, they catch the attention of so many traders, especially the i, investors who fear they might miss out on the profitable, great deal. 

After the demand for the token has creased, other investors have the desire to have some of it. This time, whales are in good profit and they decide to sell some of them.

Whales triggered by BTC's price this week

Identifying whale bids' clusters, Whalemap unveiled what seems to be like to awaken market confidence from some investors that have large BTC balances ranging from 100 to 10,000 BTC. On Tuesday, it was summarized by researchers on Twitter  is triggered to accumulate more bitcoin as a result of the recent price.

According to data by Cluster, whales are in posseshaveoins bought at spot prices while the price was trading between $36,000 support and $38,000 resistance.

Generally, the portion of whale wallets per BTC supply is finally at the top in the last 10 years. This was shown by  Glassnode agency on-chain analytics' data uploaded on Twitter by Twitter's account priced in BTC.

This happened despite the large base of Bitcoin users in comparison to the early days' biggest cryptocurrency. Whale's activity was described last week by William Clemente and traders as "fairly heavy" purchasing.

Exchanges see a new influx of BTC this weekend

The outcomes run in opposite to a decrease in buying trend which started in the middle of January. Cointelegraph reported that in recent weeks, exchanges were experiencing more and more outflows than inflows despite the lower lows being formed on spot price action.

BTC has been sent by exchange users to their account in the last few days as BTC/USD in just two weeks and has attained its highest level. CryptoQuant, an on-chain analytics agency monitored the 21 platforms and realize that their balance saw an increase on the 29th of January from 2.357 million BTC to 2.377 million BTC on the 31st of January which was the recent date for which the data was available

Whales don't necessarily have to initiate huge buys on exchanges. They can buy directly from coin miners or buy over the counter.