Bitcoin (BTC) addresses that contain at least 1000 BTC, or so-called whales, have started collecting more tokens during the recent market recovery. As of February 10, the total supply at these addresses was 8.096 million BTC, up from 7.95 million on January 24, according to Coin Metrics.
Bitcoin whales and institutional flows
Buying sentiment among the richest crypto investors has picked up during Bitcoin’s recovery over the past two weeks, with BTC rising from a low of 2022 at $ 33,000 on January 24 to around $ 43,500 on February 11.
Delivery of bitcoins to addresses larger than 1000 BTC. Source: Currency Metric, Mysari.
Small bitcoin investors with less than 1 BTC address, the so-called “fish”, have also joined the hoarding during the recent bitcoin price rally.
Meanwhile, Data Resource Ecological Metrics shows coin calculation data in clusters, showing the simultaneous accumulation behavior between Bitcoin whales and fish.
Interestingly, the combinations looked similar in the days leading up to BTC’s all-time high of $ 69,000 in November 2021.
Bitcoin variant on chain. Source: Currency measurements, Environmental measurements.
“Once again in this cycle, this rise in prices correlates well with buying small fish and whales at the same time over a longer period,” wrote Ecoinometrics analyst Nick in a note posted to the Fed. 7 by adding:
“I do not know if this signal will predict a steady increase, but hey, things are going very well now.”
A report published by CoinShares this week also showed an increase in the flow of cryptocurrencies last week. In particular, capital injections into these funds have quadrupled to $ 85 billion, with $ 71 million targeted at Bitcoin-focused investment products, indicating that renewed institutional interest is also helping BTC’s price recover.
Net inflow of digital assets as of February 4, 2022. Source: CoinShares, Bloomberg.
“Now just warm up”
Nick suggested that there is plenty of room for Bitcoin to rise in value in the coming months, referring to a so-called “combined risk score” based on four criteria: risk of market expansion, risk on the demand and supply side, risk of shareholder return. , and shareholder risk. increasing pressure from sellers.
Related: Bitcoin refuses to sell since 7.5% US inflation fails to keep BTC low for long
The result is represented by red and blue colors that indicate a hot and cold market, respectively. The hotter the market, the stronger the sales pressure.
“Now it’s just overheating,” said an Ecoinometrics analyst, adding that “theoretically, there are no barriers to inflation other than a lack of momentum.”
It combined the risk level of bitcoins. Source: environmental measurements.
BTC price levels to keep an eye on
Meanwhile, the Whalemap data tracking plan on the network predicts $ 46,200- $ 49,000 as Bitcoin’s “current resistance area”, indicating higher trading activity in the price zone in the past.
Similarly, the company noted that the $ 41,400 to $ 42,400 series now serves as support, as shown in the chart below.