According to the latest data from CryptoQuant, the whales will continue to accumulate Bitcoin (BTC) even though the price has more than doubled in 2021.

This trend indicates that confidence in Bitcoin is strengthening as the price now tries to beat above the $ 50,000 level.

Why Pisces’ trust is important
During bullish cycles, whales can profit from their positions, especially if the futures market is very crowded.

Whales that sell their assets to balance their portfolios can lead to price fluctuations in the market, especially when accompanied by a strip liquidation.

In this bullish cycle, network data shows that whales are buying bitcoin instead of selling it, perhaps in anticipation of more bullish opportunities in the future.

Ki Yong Joo, CEO of CryptoQuant said:

“Whales collect bitcoins in dollars. They’ve created a lot of bear traps recently, but the price seems to be reaching the institutional buying level of 48K. Given the recent outflows to Coinbase, most outflows that went to portfolios have been 48K.”

Coinbase pro churn. Source: CryptoQuant
Whales or investors with high net worth may accumulate bitcoins instead of earning on their positions, because they think a super-cycle can take place.

Prior to the current bullish cycle, Bitcoin did not have much institutional interest, especially from state-owned companies and financial institutions.

Bitcoin has become very attractive in an environment where the continuous increase in the money supply from central banks forces some companies to look at alternatives to cash.

In addition, William Clemente, an analyst under a pseudonym, points out that backlog titles are increasing, indicating a new wave of backlogs.

Looks like we’re in the middle of a new wave of new #bitcoin-hoarding headlines

– William Clemente III (WClementeIII) March 3, 2021
Macro factors are okay with Bitcoin Rally
As Fundstrat’s Lior Shimron explains, Bitcoin still has a lot of room to launch if it is valued at M1 Money Supply.

Shimron said the Bitcoin cycle could “get really wild”, indicating that Bitcoin is far from reaching a potential peak.

“Bitcoin, measured by the M1 money supply, is still very far from ATH. In the face of unique money pressures, a bull market may be in the beginning. This cycle can get very wild.”
There are several other indicators that indicate that a Bitcoin summit is likely to be reached in the near future.

For example, the SOPR indicator, which measures the profitability of investors, shows that many investors have already taken profits from their positions.

In the foreseeable future, this may reduce the significant sales pressure on Bitcoin, which coincides with continued purchases of Bitcoin in the whale’s circulation.

Raoul Pal, CEO of Real Vision Group, shares a similar view. He said Bitcoin would absorb most of the world’s capital over time. He said:

“But it says that investing in technology and above all Bitcoin (and all digital assets I guess) will continue to absorb all the world’s capital over time, as people realize that this is the most effective way to create wealth. Value.”

Source: CoinTelegraph