The number of Bitcoin whales – or the wallets holding more than 1,000 BTC – has hit a two-year high record as the network’s halving approaches. The aftermath of the market crash that was induced by the coronavirus pandemic saw an increase in the number of Bitcoin wallets holding more than 1,000 BTC.
Bitcoin whales increasing before the halving
According to a report by Glassnode Insights, Bitcoin whales have started to accumulate Bitcoin across the past few months. This pattern of whale numbers is similar to the one seen in 2016 at which point the number of Bitcoin whales hit its highest of 2,000 whale investors. That time was also similar in the aspect that both times the number of Bitcoin whales soared before the network’s halving event.
Last time the number of whales was around 1,600 before it starting rising due to the halving event. This time the trend of investors seems to repeat that and it appears that investors are eagerly awaiting the halving and what’s in store after the event.
With this halving event, the block reward of the Bitcoin network will drop from 12.5 BTC to 6.25 BTC per block. The halving would occur on block number 630,000 and is expected to occur on May 12 if the mining rate continues in the expected route.
Most analysts and traders believe that block halving will cause the price of the asset to soar due to the supply-demand relationship. As Bitcoin’s demand remains the same while its supply decreases, the price of the asset is bound to rise. However, some analysts believe that halvings are already priced in and the bull runs are usually triggered due to other reasons such as increased adoption.
Featured image by pixabay.