The number of Bitcoin addresses with at least 1000 BTC, commonly referred to as Bitcoin whales, has reached a 4-year all-time high since around the same period in 2016 which is concurrent with the recent Bitcoin price surge.
According to data from the on-chain analysis firm Glassnode, there are now 1939 bitcoin addresses with a minimum of 1,000 BTC. The last time there was such a high number of accumulation was in autumn 2016, a short while before the 2017 bull run.
Bitcoin whales are known for their power to affect Bitcoin’s market dynamic by influencing buying or selling pressure and potentially changing a certain price direction.
Last week, the number of whales increased by 2.2%, possibly building up the buying pressure and contributing to Bitcoin’s current price surge above $13,000.
BTC Demand Is Higher Than Supply
Glassnode data also indicates that Bitcoin’s active supply is at a 3-year low of 1.3 million BTC.
“$BTC Active supply 7y-10y (1d MA) just reached a 3-year low of 1,318952.381 BTC. Previous 3-year low of 1,319,005.968 BTC was observed on 18 October 2020.”
Bitcoin’s price gathered momentum after Paypal announced crypto trading and payment services to more than 340 million customers. BTC’s price surged to $13,300 on Thursday, before retracing and settling above $13,000.
In 2020, the total number of whales has increased by 13% with a notable boost from the 20% US dollar inflation, which has been a key focus for Bitcoin as a now more superior store of value.
Reports have indicated that while individuals were first to turn fiat into BTC to preserve value, institutional investors in 2020 have also accelerated bitcoin’s price upsurge by converting percentages of their portfolios into Bitcoin.
Bitcoin’s Next Price Target is at $30,000
Bitcoin has so far registered the best weekly price performance in 6 months after its market value rose by 13%, reclaiming a market dominance above 60%.
As earlier reported, the overall sentiment about the bitcoin price direction is bullish. In June 2019, Bitcoin’s price surged to $13,800, a level that analysts believe will only be a stepping stone for Bitcoin to surpass its all-time high of $20,000.
Additionally, analysts are now eyeing $30,000 as the next price destination with support from both technical and fundamental indicators. Bitcoin supporter and hedge fund billionaire Paul Tudor Jones stated in an interview with CNN that Bitcoin is about to take off.
“I like Bitcoin even more now than I did then. I think we’re in the first inning of bitcoin.”