Historically, BTC whales have been known to influence the prices of cryptocurrencies. The latest whale was the transfer of at least 92,857 bitcoins that took place on 7th August this year. However, according to data from blockchain analytics website, Glassnode, the number of bitcoin wallets (Whale wallets) moving large amounts of bitcoin has skyrocketed to 100,000 since the start of 2020.
Bitcoin fees metric up by 51.9 percent
The forecast also suggested that the number of bitcoin investors wiring their crypto to exchanges, for storage, has doubled. Furthermore, the report indicated that BTC fees across the lightning network surged by 51.9%. During press time, the number of bitcoin addresses that are sending their satoshis to exchange platforms stands at 100,000.
Prior to the halving event that took place back in May of this year, anticipation mounted on the price of bitcoin. This could have resulted in high numbers of investors staking their investment on bitcoin. Notwithstanding, multiple US dollar prints by the United States’ federal reserve has raised positivity and social indicators for digital currencies. Taking also into consideration, the lockdown is placing restrictions against the use of paper notes and opening up a smooth transition to a cashless society. Hence the high number of BTC whales.
Additionally, cash supply across the economy has hit atleast $6.1 trillion. Taking into account Donald Trump’s stimulus project plus bailouts from banking institutions, Mid-sized enterprises, corporations and health centres.
Increased cash supply could be triggering BTC whales
Satoshi Nakamoto’s ideal for bitcoin was to have a peer to peer currency that doesn’t correlate with stocks or fiat. This was meant to be a positive factor for individuals and investors transitioning from fiat currency to digital assets. However as time goes by, a higher correlation between bitcoin and stocks continues to take center stage. Just some days ago, Capitalist Mark Kaiser tweeted his opinion about an inverse correlation between Bitcoin and the US dollar.
Nevertheless, the last time the market witnessed peak numbers of BTC whales is back in 2017. Around the time that Bitcoin skyrocketed to $20,000.