The small but rich Bitcoin (Bitcoin) Traders have accumulated a large amount of benchmark cryptocurrency during the period when their price has risen from below 30,000 USD to above 40,000 USD, indicating that they are confident in the long-term bullish setting of the asset.
The basis for the upward outlook comes from the cryptocurrency-focused communications service Ecoinometrics.It’s in the latest Version A series of on-chain data track the inflow of Bitcoin into the wallets of the wealthiest cryptocurrency traders (called “whales”) and the wallets of entities holding small amounts of cryptocurrency (the so-called “small fishes”).
“After several weeks of data showing that most address buckets are accumulating coins, Bitcoin finally rebounded from the $30,000 level,” wrote Nick, the author of the Ecoinometrics newsletter, as he highlighted a heat map that witnessed the inflow of Bitcoin. Small fish and whale purse.
Red indicates a situation where each group (whale or fish) has accumulated Bitcoin in the past 30 days. Conversely, blue corresponds to a situation where only smaller fish have accumulated digital assets in the same period of time.
The Bitcoin heat map has turned red again.
“We can draw the same graph for the current cycle, and we observe almost the same things,” Nick pointed out, while pointing to the following graph from July 2020 to July 2021.
Beluga Whale Everywhere
Data from other sources are consistent with the analogy of econometrics.
For example, WhaleMap, a data tracking service focused on encryption, reported on Thursday that the number of unspent transaction outputs currently belonging to the Bitcoin Whale Wallet has surged, indicating that they intend to wait for higher prices.
“The last whale bubble in our range,” Tweet Whale map.
“Break through $40,472, and the next resistance is only around $47,000. The Whale Bubble is a victory.
Basic background
Although the chairman of the US Federal Reserve, Jerome Powell, stated that the fundamentals supporting whales to participate in the current Bitcoin rally indicate that people are concerned about rising inflation. Try to avoid this problem At his latest press conference on Wednesday.
Powell admitted that inflation has exceeded the Fed’s forecast for 2021, but blamed it on the abnormal nature of the US economic recovery. He pointed out that supply bottlenecks caused shortages, leading to “temporary” price increases.
These comments came as the Fed continued its expansionary policy of close to zero interest rates and $120 billion in bond purchases per month, as the Wall Street Journal editorial famous, Which could have been discontinued two months after its launch in March 2020.
The magazine quoted a report from the National Bureau of Economic Research last week that the US economic recession officially ended in April 2020.
Jeffery Wang, head of the Americas of Amber Group, told Cointelegraph: “The Fed is facing a real challenge in balancing the response to the global pandemic, low interest rates and seemingly rising inflation.” The quantitative easing program.
Wang added, Cheap currencies and rising inflation Created a bullish narrative for safe-haven assets such as stocks, real estate and Bitcoin. He says:
“From here, I think cryptocurrency and BTC will still be regarded as an asset, although high volatility can hedge against inflation and should perform well in this environment.”
At the same time, Pankaj Balani, CEO of the crypto derivatives platform Delta Exchange, predicts that Bitcoin will continue to move towards a bull market of $50,000, on the grounds that option activity will remain heavily upward until at least mid-August.
related: Bitcoin traders expressed mixed emotions about the next move in the price of BTC
“There are inter-term phone purchases-weekly, bi-weekly and monthly,” Barani told Cointelegraph in an email statement.
“Fifty thousand (50K) strikes due in August are highlighted here, with the highest OI. Once again, there are not many OIs between 45,000 and 50,000 strikes (expiring in August), we can see The violent fluctuations here.”
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