As the cryptocurrency market continues to see momentum in institutional investor interest, Bitcoin (BTC) is trading at $ 52,000.

However, current data shows that the number of whales holding Bitcoin (BTC) has reached an all-time high. Considering that the BTC price remains above $ 50,000, this development can be considered as a bullish signal.

As seen in the table below, whales continue to actively accumulate Bitcoin as the bull market continues.

In the opposite case, in a scenario where whales sell their Bitcoins to make a profit, the price may drop dramatically. But as the on-chain data shows, as the whales continue to accumulate, the foundation for a long rise is strengthened.

Analysts at Glassnode, who provided the data, announced that they currently have 94,000 BTC addresses holding over $ 1 million in Bitcoin.

Besides Glassnode, researchers at Whalemap, a data analysis platform that tracks whale activity, have noticed a similar trend. The researchers noted that the number of addresses holding 1,000 to 10,000 BTC during previous bull cycles decreased. But in the last bull cycle, the number of whales has increased significantly.

The conditions for Bitcoin’s current rise to continue appear to have been met: whales are buying, trading volume is increasing overall, and there is great institutional interest in Bitcoin.

However, there is also a big risk in the market and this is the heavily leveraged futures market. As of February 18, the futures funding rate for both Bitcoin and Ethereum has exceeded 0.15%. The normal funding rate for cryptocurrencies is around 0.01%. An increase in the funding rate indicates that the majority of the market is buying or is in a long position. The problem arises when Bitcoin or Ethereum (ETH) sees a small drop. As the market is highly leveraged, it can cause an intense retreat, which often results in a steep correction.

See Also
What is expected for Bitcoin, which lost 24 thousand rejection for the second time?

The probability of a correction is high in the near term due to high funding rates. Considering that the crypto market is seeing frequent corrections on the weekends, the possibility of BTC and ETH to decline in the next few days continues despite the rising market structure.

Previous articleHow Ripple Is Approaching The CBDC Financial System? RippleX Official Announces!
Next articleNew Claim in Tetragon’s Lawsuit Against Ripple: Making a “Word Game”!


Please enter your comment!
Please enter your name here