Bitcoin ‘whales’ jump back into market during cryptocurrency’s rebound

A visual representation of Bitcoin.

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Bitcoin’s largest investors seem to increase their positions when the price rebounds.

Cryptocurrency accounts with bitcoins valued at around $ 50 million or more have steadily increased their purchases since the end of June, according to new data from blockchain firm Chainalysis. This upward trend lasted until late August when prices rebounded above $ 50,000.

“The bitcoins accumulated by the recent major investors are related to the medium-term change in the price of Bitcoin,” Philip Gradwell, chief economist at Chainalysis, told CNBC.

Bitcoin “whale” activity has been linked to the price action this year. These larger investors were a “driving force” in the market through February, Gradwell said. As large investors acquire more digital assets, prices typically rise over 28 days. When they sell, prices fall, Chainalysis found.

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Whale activity has fluctuated with the volatility of the digital asset. While they were strong buyers earlier in the year, whales began selling when prices fell briefly in March and the data said they peaked around April.

From late June to August 22, these major investors bought the equivalent of nearly $ 10 billion at Tuesday’s rates. According to the data company, whale populations are now back to February levels.

These larger investors tend to be long-term owners as well. Whales measured by Chainalysis, on average, keep at least 75% of the bitcoins they buy.

Bitcoin hit a three-month high this week and has continued its steady rise since mid-July. The value of the entire cryptocurrency market also topped $ 2.2 trillion after it topped $ 2 trillion again earlier this month, according to Coinmarketcap.

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