New data shows that only whales are taking profit from the volatile price movements of Bitcoin. The BTC holdings are moving from small retailers into the wallets of millionaires.
Whales are “Buying the Dip”
Data analytics firm Glassnode reveals that people whose wallets contain more than 1,000 BTC are purchasing the top digital asset during “dip.” The protocol specialist Elias Simos from Bison Trails finds out that wealthy investors in the crypto space are accumulating profit since December. Simos revealed wallets having over 1000 Bitcoin have increased in numbers while addressing low BTC have declined.
He further explains that whales are “buying the dip,” while retail users sell their capital. So, the rich entities are filling their bellies at the cost of small actors.
The number of addresses containing BTC in a low amount is decreasing. The trend started after Bitcoin topped above $20,000 and then marched towards $42,000. On-chain data unveils the transfer of BTC wealth from small investors to wealthy investors.
Prominent investor Alistair Milne warned people of the consequences. Milne requested people not to be the part of the campaign that transfer control of Bitcoin supply to hedge mangers or billionaires.
Before 2020, the crypto space was accumulated by retail customers and traders. In the bull run of 2017, there was a rush of retail investors who then dumped it for a high return. On the other hand, the current bull run is pumped by institutional players who have stored the top digital currency for the long term. Some large investment corporations have also added Bitcoin. Due to big investors, the global crypto market cap broke above $1 trillion, which is a massive success for the industry. Bitcoin reached its all-time high of $40,000 on January 8.
A strange thing happens as a well-known investment company wants to cash out Bitcoin. Guggenheim Partners is going to reduce BTC holdings. Guggenheim Partners added the flagship digital asset in November, but the recent downfall has caused them to rethink selling some Bitcoin. “The target technical upside of $35,000 has been exceeded. Time to take some money off the table,” said CIO Scott Minerd.
The current market condition is not good for major cryptocurrencies. More than $200 billion has washed away from the crypto markets. Currently, the price value of Bitcoin is standing at $31,855 after decreasing by 20.74% in the last 24-hours.