Bitcoin buildup accelerates among ‘whales’ and ‘fish’, as BTC rallies to $ 40,000

Small and wealthy Bitcoin (BTC) traders have amassed the benchmark cryptocurrency en masse during the period when its prices rose from less than $ 30,000 to over $ 40,000, signaling their confidence in the bullish pattern. long-term asset.

The basis for the bullish outlook came from Ecoinometrics, a crypto-focused newsletter service. It highlighted in its latest edition a flurry of on-chain data that tracked the flow of Bitcoin into wallets owned by the wealthiest crypto traders, known as ‘whales’, and entities that held the crypto. -currency in smaller amounts – the so-called “little fish.”

“After a few weeks of data showing that most address compartments are accumulating coins, Bitcoin is finally rebounding from the $ 30,000 level,” wrote Nick, the author of the Ecoinometrics newsletters, as he highlighted a map thermal that saw Bitcoin pouring into the wallets of small fish and whales.

The red color indicates a situation where every group – whales or fish – has accumulated Bitcoin in the past 30 days. Conversely, the blue color corresponds to situations where only the smallest fish have accumulated the digital asset in the same amount of time.

Bitcoin’s heat map has turned red.

“We can do the same plot for the current cycle and we’re seeing pretty much the same,” Nick noted, pointing the July 2020-July 2021 chart as follows.

Moby Dicks everywhere

Data from other sources matched the Ecoinometrics analogy.

For example, crypto-focused data tracking service WhaleMap reported on Thursday that the number of unspent transaction exits currently belonging to Bitcoin Whale wallets has increased, suggesting their intention to wait for higher prices.

“The last whale bubble in our range” tweeted Map of whales.

“Go over $ 40,472 and the next resistance is only around $ 47,000. Whale bubbles for the win.

Basic context

The fundamentals behind the whales’ involvement in Bitcoin’s current rally pointed to fears of a persistent rise in inflation despite attempts by US Federal Reserve Chairman Jerome Powell to put the question on the sidelines during his recent press conference on Wednesday.

Powell admitted that inflation exceeded the Fed’s projections for 2021, but blamed it on the unusual nature of the economic recovery in the United States. He noted that supply bottlenecks created shortages which led to “temporary” price increases.

The comments emerged as the Fed continues its expansionary policy of near zero interest rates and $ 120 billion in monthly bond purchases which, as the Wall Street Journal editorial noted, could have be discontinued two months after its launch in March 2020.

The newspaper cited last week’s National Bureau of Economic Research report, which noted that the US recession officially ended in April 2020.

“The FED has a real challenge to overcome in balancing its response to a global pandemic with low interest rates and seemingly rising inflation,” Jeffery Wang, head of the Americas at Amber Group, told Cointelegraph, calling it “an extremely difficult situation. “for central banks managing their quantitative easing programs.

Wang added that the backdrop of cheap money and rising inflation creates a bullish narrative for flight-to-safety assets such as stocks, real estate and Bitcoin. He said:

“From there, I think crypto and BTC will still be viewed as an asset which, while very volatile, can act as a hedge against inflation and should perform well in this environment.”

Pankaj Balani, CEO of crypto derivatives platform Delta Exchange, meanwhile predicts Bitcoin to continue its bull run towards $ 50,000, citing options activity that he says remains heavily biased upward at least until at least. ‘in mid-August.

Related: Bitcoin Traders Express Mixed Emotions Over BTC Price Next Step

“There is call buying activity across the deadlines – weekly, bi-monthly and monthly,” Balani told Cointelegraph in an emailed statement.

“Fifty thousand (50,000) strikes for the August expiration are highlighted here and have the highest IM. Again, there isn’t a lot of OI between 45,000 and 50,000 keystrokes (for the August expiration) and we can see some sharp movements here.

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