Bitcoin’s ‘whales’ return to market during cryptocurrency rebound

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The biggest Bitcoin investors appear to be increasing their positions as the price recovers.

Cryptocurrency accounts holding around $ 50 million or more in bitcoin have steadily increased their purchases since the end of June, according to new data from blockchain company Chainalysis. This uptrend continued until the end of August as prices rebounded above $ 50,000.

“The bitcoin accumulated by recent large investors is linked to the medium-term evolution of the price of bitcoin,” Philip Gradwell, chief economist at Chainalysis, told CNBC.

Bitcoin “whale” activity has been linked to price action this year. These big investors were a “driving force” in the market until the end of February, Gradwell said. As large investors acquire more digital assets, prices typically increase over 28 days. When they sell, the prices go down, Chainalysis found.

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Whale activity has fluctuated with the volatility of the digital asset. While they were strong buyers to start the year, the whales started selling as prices briefly fell in March and sold to their highest around April, the data shows.

From the end of June to August 22, these large investors acquired the equivalent of nearly $ 10 billion at Tuesday prices. Whale holdings are now back to February levels, according to the data company.

These large investors also tend to be long-term holders. Whales measured by Chainalysis tend to retain at least 75% of the bitcoin they buy, on average.

Bitcoin hit a three-month high this week, continuing a steady rise since mid-July. The value of the overall cryptocurrency market also crossed $ 2.2 trillion, after once again breaking the $ 2 trillion mark earlier this month, according to data from Coinmarketcap.

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