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In the midst of the half-price recovery, whales appear to be actively accumulating digital gold.
The Glassnode chart 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 probably due to the fact that long-term headlines return online to increase their inventory”Said Matthew Dibb, co-founder of the cryptanalytic service Stack.
Therefore, the growing interest in whale digital gold may be due to the reactivation of the cryptocurrency market on the eve of halving and the global instability factor.
“Some of these addresses may belong to very wealthy people or groups of people who use Bitcoin to diversify amid the ongoing coronavirus pandemic and in anticipation of a mining prize that halves.”“- Explained the head of Interlapse Technologies and Coincurve founder Wayne Chen.
Based on historical data, as well as supply and demand laws, many investors expect a price increase for the first cryptocurrency after a halving, which will take place on May 12. Cutting the block reward in half will make Bitcoin an even scarcer asset, the prices of which will grow with constant or increasing demand.
“A year after the first half in November 2012, the price increased from $ 11 to more than $ 1,100. Then, after a second half in July 2016, bitcoin grew from $ 600 to $ 20,000 in late 2017. “, – George McDon, co-founder of investment company KR1, shared his observations.
On the other hand, many relatively inefficient miners are likely to be forced to leave the industry due to a sharp drop in profitability from operations. This threatens to drop the hashrate of the first cryptocurrency network.
Additionally, many will sell almost all of the assets mined in the hope of a rise in the price of BTC, which will give the opportunity to stay in business. Bulk sales to cover miners’ costs 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 large volumes of assets. Accordingly, the dynamics of the number of such addresses cannot be unequivocally perceived as an indicator of changes in long-term investor behavior affecting the price of BTC.
Remember that many market experts trust that small miners will either leave the game or be absorbed by bigger, more efficient players after half.
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