During the market fall on May 19, owners of Bitcoin addresses with balances from 10,000 to 100,000 BTC increased their positions by 122,588 BTC. This is the conclusion reached by Anthony Pompliano, co-founder of venture capital firm Morgan Creek Digital, based on data from Glassnode. Moreover, the number of whales has also increased markedly.
The whales have shown themselves most noticeably in the United States. The expert pointed to the formed $ 3000 premium on Coinbase relative to other cryptocurrency exchanges during the rebound.
Pompliano provided data on flows to OTC platforms used by institutional clients. They reflected a sharp jump in revenue.
The head of Morgan Creek Digital didn’t rule out the formation of a short squeeze due to the continued negative financing rates in the market for perpetual contracts for Bitcoin.
Large crypto funds MVPQ Capital, ByteTree Asset Management and Three Arrows Capital polled by Bloomberg confirmed Pompliano’s hypothesis about buying in the face of a sharp market decline. Every time the price drops, this is a chance to buy. On May 19-20, there was a sharp increase in revenues. It once again confirmed the well-known thesis that large players are buying on a falling market.
Analysts suggested that many investors in the cryptocurrency market were likely keeping cash on the sidelines, waiting for a real opportunity to invest in the asset class once again. Demonstrating investor confidence in the long-term market trend.
Formerly famous American investor Bill Miller saw no reason to worry about the current decline in the price of Bitcoin.
We will remind, it became known that Goldman Sachs in a new report recognized cryptocurrencies as an asset class a year after the statement to the contrary.
Positive news for Bitcoin
The lingering decline in the quotes of all major cryptocurrencies is pushing holders of digital assets to sell them on the exchange. However, experts point out the opposite tactics with regard to large institutional players.
A number of financial companies having waited for the lowest point in the Bitcoin rate, began to buy the asset. According to analysts, the digital currency market will very soon recover from the crash. In recent days, large investors have bought a total of 122.5 thousand Bitcoins. At the time of writing is almost $ 4.5 billion.
Experts are confident that such a serious one-time increase in transactions for the purchase of the first cryptocurrency can have a very positive effect on its quotes. After all, when the whales continue to accumulate the asset, the fundamental support for the upward rally is strengthening.
Accordingly, analysts are confident that all conditions have been created in the BTC market for the rally to continue. Whales are accumulating assets, trading volume is growing, and institutional interest is increasing.
A similar situation was in 2016, before the halving of the coin, after which it rose in price by 5000%. Experts believe that current events indicate that “whales” are betting on the aggressive growth of the coin in the future. So they are investing in this asset now.
Investments in technology and above all Bitcoin will continue to absorb all of the world’s capital over time. As people realize that this is the most efficient way to create wealth over and over again above their value.