Glassnode: “A decrease in the number of Bitcoin” whales “can lead to an increase in the price of BTC”
According to Glassnode, the number of Bitcoin addresses belonging to the “whales” is declining, which may be a sign of a rapid “bull” rally.
According to Glassnode’s The Week On-Chain report, the growth in the number of addresses owned by large bitcoin holders containing 1,000 BTC or more slowed in September.
Over the past year, the number of “whales” has been constantly growing, by analogy with how it happened in 2012 and 2014-2015. However, the situation changed in September, when the number of addresses with more than 1,000 BTC began to decline. The last time a similar trend was observed in the last quarter of 2019.
According to Glassnode analysts, “contrary to the popular belief that whale pressure can reduce the price,” now the situation is good for Bitcoin. Taking into account 2010 data, Glassnode determines the following trend:
“The beginning of a reduction in the number of” whales “often means increased interest from retail investors and a rapid increase in prices.”
According to analysts, although the number of “whales” is just starting to decline, this “may mean the beginning of a new” bullish “trend.” Glassnode experts rely on the fact that a decrease in the number of addresses containing more than 1,000 BTC is often associated with a subsequent increase in prices using the logarithmic scale.
However, the dollar state of Bitcoin “whales” today and a few years ago is very different. Now the holder of 1,000 BTC is considered a major investor – about $11 million at the current rate. However, in 2011, the owner of BTC in the amount of $200 was considered a major investor.
Recall that in September, Glassnode analysts said that the number of wallets storing from 1 BTC continues to increase and has already reached a new record – 823,000.