A big Bitcoin whale recently moved about 68,000 BTC ($599,879,000), from a wallet that had been inactive since 2015, demonstrating how several major players have stopped moving their BTCs for years, but still, show unconditional backing for Bitcoin on the long run.
The move was first reported by market research firm CoinMetrics via its Twitter account.
Movements like this show how the biggest whales and even miners are hoarding their bitcoin ere the halving to accumulate profits in the long term without worrying about selling in the middle of a bearish trend that ended up in one of the biggest slumps in its history when Bitcoin touched the dangerous $3k support.
Many attributed the crash to the high amount of liquidations on the BitMEX futures platform, influenced mainly by short term speculators selling high amounts of bitcoin in exchange for some cash liquidity, perhaps because of the uncertainty of the COVID-19 pandemic. The same happened with financial institutions that quickly closed long term contracts, inducing a much larger drop in the global markets.
Increased demand from investors in cryptocurrencies
Many whales took advantage of last month’s crash, and instead of selling their crypto, they were inclined to buy, even more, strongly expanding their stash, as happened with Grayscale — which owns 1.7% of the total Bitcoin supply. The investment firm increased its Ethereum funds by more than 145.12% in just four months. Even some miners acted in the same way, leaving aside the idea of “miners’ capitulation” before the Halving event.
Bitcoin soars as stocks markets continue to fall
Today, Bitcoin broke the $8000 barrier — an event many analysts thought impossible before May’s halving. As ZyCypto previously reported, most of the technical indicators are showing signs of bullish sentiment among investors: a lack of clear resistance on the path to 9000 USD, a high RSI, and “independence” from the S&P500, and the MACD about to form a bullish cross, all provide good reasons to be optimistic about Bitcoin’s future.
Currently, Bitcoin price is holding on to $8.7k looking to break the new $9000 barrier which is not far off at all. It’s not certain whether bitcoin will reach $12,000 as some analysts predict, but it is clear that many investors, whales, and miners are betting on keeping the bitcoin network afloat in the hope of future profits.