Bitcoin entered a resistant area of below $55K evaluation more than once during the last week. However, the flagship cryptocurrency has started to get reinstated once again. At the time of writing this article, Bitcoin has reached $58,845 with a daily profit reading of 4.53%. The driving force behind this upsurge is the presence of the activity of whales that have resurfaced to level the field.
During the last few months, a massive amount of Bitcoin was squeezed from exchanges and taken to cold storage. There is a 200 percent rise in the number of whales that have at least 100K Bitcoin under their possession. The data issued by Santiment also declares that while whale addresses have risen from 0.76% to 2.20% in less than 11 months, the percentage of retail investors with 1K-100K Bitcoin has declined from 42.4% to 39.5% during the same period.
Financial Analysts Pointing Towards a Healthy Bull Market Session for Bitcoin
Rafael Schultze-Kraft, the Glassnode co-founder, recently tweeted that the capital inflows have become rife based on the realized capitalization readings. The realized capital limit (Rcap) is the measure of the Bitcoin market cap based on the recent price indicator for every single coin. Kraft declares that Rcap has been increased 200%, standing at $250 billion during the last six months.
Such an appreciation history warrants the market fertility for a healthy bull rally yield. He also adds that the realized cap has grown in a synchronized manner alongside the conventional market cap. The Rcap would keep highlighting the sudden price spikes until the current bull run has completed its lifecycle. For Lex Moskovski, CIO at Moskovski Capital, these types of transaction patterns are an uncommon phenomenon and could be cajoled by a group of institutional investors or their corporate clients.
Crypto Exchanges have Started to Show Signs of Massive Bitcoin Extractions
William Clemente opines that the current price surge of Bitcoin has been triggered by shrinking Bitcoin supply. The data issued by Glassnode shows that the massive outflows from exchanges have been moving into cold storage for long-term holdings. He further added that mostly inexperienced and green crypto traders are selling Bitcoin for the time being.
A report compiled by CryptoQuant indicates that 11,000 BTC have been moved from the Coinbase platform along while other exchanges have shed 7,200 BTC on a collective level. Clemente aided his bullish theory by claiming that Bitcoins are traveling from weak hands to diamond hands. He also said that the small price dips should not upset investors because the flagship cryptocurrency has a lot of bull fuel left to be exhausted.