The latest data from the on-chain analysis platform Glassnode shows that at the current exchange rate, approximately $19.5 billion in Bitcoin has flowed into wallets holding at least 100 BTC and at most 1,000 BTC. Tesla disclosed in its securities filing in January that after adding $1.5 billion worth of BTC to its balance sheet, deposits soared immediately.
This news caused a sensation on February 8, when the cost of buying a bitcoin on Coinbase was as low as $38,057. By mid-April, the price of Bitcoin surged to $65,000, which was driven by the bulls. The bulls expect that Tesla’s involvement in the cryptocurrency field will affect more companies to add Bitcoin to their balance sheets.
-Samson Mow (@Excellion) February 9, 2021
Due to the anti-inflation claims of cryptocurrencies, the prospect of Bitcoin adoption in companies and other institutions is booming. Many speculators expect Bitcoin to serve as an insurance for the Fed’s expansionary monetary policy, which has weakened investors’ interest in traditional safe-haven assets such as US government bonds and the U.S. dollar.
In Tesla’s filing with the U.S. Securities and Exchange Commission in the first quarter, Also noticed It wants to use its unused cash reserves worth $1.5 billion to buy Bitcoin, which suggests that the electric car manufacturer is seeking to offset the risk of potential dollar depreciation.
Tesla’s entire incident provides bullish clues to investors hoping to get the most returns from the Bitcoin bull market. Glassnode indicators show that the supply of Bitcoin held by 100-1K BTC wallets was stable before Tesla’s announcement, but rose sharply after that.
But there is a catch
However, another Glassnode metric measures the supply of Bitcoin held by wallets holding 1K-10K BTC balances, showing a steady decline, from approximately 45.5 trillion Bitcoins (approximately US$17.88 billion) to About 410,000 bitcoins (about 16.11 billion U.S. dollars).
It turns out that after Tesla’s announcement, larger whales sold their Bitcoin holdings. As a result, they became part of the 100-1K BTC supply group.
At the same time, the selling of 1K-10K BTC supply groups cannot offset Bitcoin’s bull market. The cryptocurrency is close to an all-time high of $65,000, indicating that smaller whales and retail traders have absorbed the selling pressure of larger investors.
At the time of writing, Bitcoin is trading at approximately $39,300, which is about 38% lower than the record high in mid-April.