As Bitcoin’s halving event approaches, the markets are witnessing another bitcoin rally with the price rising to over 9,000 dollars. On Thursday morning, the asset’s price was 20 percent up from the start of 2020, showing quantitative signs of a bull run. Now, the latest data shows that it might be US investors and whales that have driven the latest Bitcoin rally.
US investors behind the Bitcoin rally?
The increase in Bitcoin’s price was driven by US buyers that purchased Bitcoin across spot and derivatives exchanges. Furthermore, as the halving approaches, the total number of Bitcoin whales has been increasing to record levels. Just recently the total number of Bitcoin whales surged to a nine month-high level reaching the same level as of August 2019.
Most of this activity can be attributed to the Bitcoin halving event that is to occur in the next few days. People are excited by Bitcoin halving events as the previous two halving events were immediately followed by bullish rallies.
Across US exchanges, spot premiums are showing a stronger buy-side pressure when compared to other markets. Furthermore, exchanges that are registered to provide Bitcoin derivative services such as futures trading are rallying while other exchanges are not. The CEO of Three Arrows Capital stated that US investors give a “strong base” as the US tax system means that no investor would sell spot for small profits.
Role of Bitcoin whales
The number of Bitcoin whales or investors holding a large amount of Bitcoin has risen to mid-2019 levels. The number of Bitcoin addresses holding more than 10,000 BTC is 111. These whales support the bullish narrative as they are owned by high net-worth individuals or groups of investors that are hedging funds in bitcoin due to the COVID-19 pandemic.