“Giant whales” hoard Bitcoin, and the number of addresses holding more than 1,000 Bitcoins has increased and reached a new high

According to Newsbtc, the latest data shows that the number of addresses with more than 1,000 bitcoins has increased and reached a new high after the bear market.

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In the bear market, the number of addresses holding more than 1,000 Bitcoins reached a peak

Holding onto your coins through a bear market can be painful, and for those longs who bought high and are unwilling to sell low, a bear market can undoubtedly bring fear. However, for others, it can be a once-in-a-lifetime opportunity to accumulate assets at low prices and wait for the maximum economic return.

This is exactly what happened during the crypto winter of 2018, when the number of addresses holding more than 1,000 Bitcoins grew. “Whales” may have accumulated a large amount of Bitcoin resources during the 2018 bear market, and now they just need to simply hold on.

The number of addresses holding more than 1,000 Bitcoins suddenly dropped after Bitcoin peaked at $20,000 in 2017. The number remained largely flat throughout most of 2019, but just before Bitcoin’s sharp drop in November, which saw it fall below $6,000 support and subsequently hit a bear market bottom, the number of addresses holding more than 1,000 Bitcoins grew by nearly 20% during that period.

When Bitcoin hit a low of about $3,150, the number of addresses with more than 1,000 Bitcoins surged again. The April 2019 rebound was preceded by another surge in the number of addresses, from about 1,500 addresses at the bear market low to 2,000, a total increase of 25%.

The number of “whales” increased significantly in 2019, possibly due to the influx of institutions or exchanges. Bakkt is likely one of them because it needs to store Bitcoin for physically delivered futures.

The number of addresses holding more than 1,000 Bitcoins always seems to rise before major price drops , as evidenced by its rise on September 24, before the cryptocurrency fell below $10,000.

The number of addresses holding more than 1,000 Bitcoins has now reached a five-year high, according to a chart from crypto market analysis and data intelligence firm Glassnode.

Have “whales” and experienced investors accumulated large amounts of Bitcoin before the halving?

First, it could mean that whales and sophisticated investors have been accumulating Bitcoin at the lowest possible prices during the massive sell-off that followed the 2017 bubble.

According to the Wyckoff Accumulation Model, the best investors buy assets at the bottom of the price and then bid up the price in the markup phase. This seems to be exactly what happened. It suggests that someone has accumulated a lot of Bitcoin and this is just the beginning of the markup phase.