Despite the crazy market and the fact that many people thought Bitcoin whales would cash out at the record $70,000 mark, they have held on to their digital assets. Coin Quant data shows that most Bitcoin whales have stuck to their HODL plan, even though there have been many chances to make currency.
The steady behavior of “whales,” or people or companies that hold a lot of Bitcoin, shocks everyone in the cryptocurrency world. They don’t want to sell, which keeps Bitcoin’s price stable and gives people faith in the cryptocurrency’s future.
Bitcoin Whales’ Confidence Reshapes Market Dynamics
This could have significant impacts on how the BTC market works, according to analysts. When whales show that they believe in Bitcoin’s long-term prospects, they not only make the market feel better, but they also get new investors to join the fight. Keeping their shares could also make prices less volatile, which would make BTC a better choice for institutional investors seeking security.
A major cause why whales are HODLing is that they are looking forward to the upcoming half event. About every four years, the halving happens, which means that the payout for mining new blocks on the Bitcoin blockchain is automatically cut in half. In the past, this event has caused the rate of new Bitcoin creation to slow down, which in turn decreased the amount of BTC in circulation.
Whales are carefully placing themselves to take advantage of the price rise that could happen after the halving. By holding on to their Bitcoin, they not only stand to win from price increases in the future, but they also make the cryptocurrency even more scarce, which drives up prices even more.
It’s interesting that while whales have unmatched faith in BTC, regular buyers don’t seem as excited. Analyst looked at Santiment’s data and found that the number of addresses holding BTC with amounts between 0.01 and 1 BTC dropped by a large amount.
The BTC network is still in good shape, though, since the number of live addresses hasn’t changed. Because BTC non-fungible tokens (NFTs) are getting more attention in the cryptocurrency community, this security may be partly due to that.
