Bitcoin cryptocurrency quotes are up again! The current price for Bitcoin is over $48,000 (as of 9 February) and has been slowly strengthening since then. Many analysts, including from Material Indicatro among others, claim that the driving force behind the change is again the so-called whales. According to these analysts, the likelihood of a Bitcoin peak will increase as retail investors enter the market en masse.
Why are whales driving the Bitcoin price up?
In recent months, so-called “mega whales” have been selling large amounts of Bitcoin between $33,000 and $40,000. Orders in the $1 million to $10 million range have increased significantly on major cryptocurrency exchanges, including Binance. However, as the Bitcoin price began to consolidate above $33,000 after a correction from $40,000, buyer demand from whales increased again. Analysts at Material Scientist said that whales were showing unusually high volume, around $150 million in 24 hours. This metric shows that whales are consistently accumulating Bitcoin in the wake of news that Tesla bought $1.5 billion worth of BTC. they said:
“And finally, whales continue to drive the whole thing and are up in a big time! Why is blue so much up, you might ask. Because of the fact that whales have extremely high net volume ($150M in the last 24 hours)! Normally they only make up a small fraction of the total CVD, but now they make up the majority. So, this move to $50k was almost exclusively driven by whales!”.
Analysts say the frenzy around public companies owning Bitcoin is creating positive market sentiment around the dominant cryptocurrency. Filbfilb, a pseudonymous Bitcoin trader, said that in the current economic environment, shareholders would likely demand that public companies hedge their exposure after Tesla removed the risk of owning Bitcoin. Additionally, Raoul Pal, CEO of Real Vision Group, also stressed that Bitcoin is still in the early stages of its rally. In terms of mainstream awareness, there is still a generally low level of Bitcoin awareness among casual investors. In 2017, many retail investors rushed to buy Bitcoin. Pal explained:
“Today I had a proximity call with my oldest, best friends, who I’ve known since I was 6 years old, on. Some are wealthy and some are struggling. Only 2 own bitcoin out of 12, and I begged and pleaded for it for a year. On the other hand, my yoga teacher keeps asking for payments in bitcoin! Early on.”