“Whales” are once again buying bitcoins en masse

Since the arrival of spot bitcoin ETFs in January, major crypto investors have bought $3 billion worth of bitcoins.

This Tuesday, prices clearly returned to the uptrend, with Bitcoin and Ether returning to important technical points. These prices also respond to the maneuvers of the whales: those big cryptocurrency holders who make and break the market.

Cryptowhale is a specific term for investors who hold significant amounts of cryptocurrency (eg more than 1,000 Bitcoins or more than 10,000 Ether) whose movements can affect the cryptocurrency market.

3 billion dollars

An interesting phenomenon in recent days is that whales have increased their Bitcoin reserves. According to data from IntoTheBlock, a company that specializes in cryptocurrencies, whales bought $3 billion worth of bitcoins.

It’s interesting because we saw some of them sell off massively when Bitcoin returned to $42,000 a fortnight ago. There it follows the price development, they come back and take back bitcoin en masse, with another 76,000 units in reserves.

Now the war chest of the biggest whales in the market is estimated to be almost 7.8 million bitcoins. The move, which the firm attributes to the authorization of the famous bitcoin spot ETFs on the market on January 10, indexed these financial products to the price of bitcoin, allowing you to follow the trend without owning one.

But in order for them to work, they must be based on tangible assets. Since there is no central bank, the market sits exactly at the depth of liquidity of these whales. On the ETF side, net capital inflows are estimated at more than $820 million, with several important signs of confidence in the market.

Despite the short-term trade-offs, we are heading towards a phase of solidity at current levels.

Antoine Larigaudrie with Pauline Armandet

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