Glassnode Reports Surge In Bitcoin Whale Accounts
Accumulation of the leading digital asset, Bitcoin, is known to be done by all and sundry in the crypto market. But a special part of all traders and investors who accumulate more than the average traders are described as Bitcoin Whales.
While some groups of traders who buy and trade digital assets on a small scale are regarded as retail traders, Whales are often regarded as those who buy and trade a larger asset quantity. Glassnode has released new data that shows that the total number of Bitcoin Whales has increased in the first month of 2021.
Glassnode says about 200 whales have entered the Bitcoin network
In their analysis, Glassnode confirmed that nothing less than 200 Bitcoin Whales had joined the already existing number on the network. In its classification, Glassnode adds anyone who holds 1,000 or more Bitcoin into the whale class. The classification means that Bitcoin Whales would be anyone who holds Bitcoin worth nothing less than $37 million.
“We have recorded a rapid increase in the number of Bitcoin Whales (wallets that have 1000+ Bitcoins) since the start of the year. In the first month of the year, we have discovered that almost 200 new participants joined the Bitcoin network as a Whale,” Glassnode said. In their on-chain analysis, Glassnode confirmed that the rising accounts could be institutional investors’ handiwork, thereby buttressing the claims that more institutional investors are flocking into the market.
Around December, Glassnode released a report stating that about 78% of the total Bitcoin in circulation is located in different wallets and are not up for sale anytime soon. This shows that investors have returned to hoarding the digital assets, which has seen the selling pressure reduce drastically.
The new cash is flowing into the crypto market
Since the surge began in the early part of this year, Bitcoin has seen a slight decline associated with a price correction of around 31%. Even though the digital asset has resumed trading upwards, it still has a long way to go in touching its all-time high of around $42,000. Presently, Bitcoin is trading at $37,000, which means that the asset must rally on a profit of close to 13% to achieve that feat.
Also, Glassnode said it has noticed that exchanging cash for crypto has been on the rise on several exchanges, including Coinbase. The analysis firm noted that their activities are higher than that of crypto-focused exchanges like Binance in the past weeks, which shows that there is already an inflow of cash into the network.
Institutional outfits like Grayscale have been pooling funds into Bitcoin after the asset recorded the slight decline and has now seen the total assets under them increase to a region around $30 billion. While a huge part suspected to be around 80% of its total asset is safely in its Bitcoin Trust, its Ethereum Trust boasts a relatively small figure in 16%. According to details, the Ethereum Trust just witnessed a boost by the recent jump in the price of the asset some days back.