Coin price is too high to store coins? A giant whale with 100-1000 bitcoins can continue to store coins

According to NewsBTC reported on February 15, cryptocurrency exchange Kraken said that "whales" holding 100 to 1,000 bitcoins are hoarding more bitcoins.

(Image source: pixabay )

Kraken pointed out in a report released on Friday that from January 3, 2020, the growth in the number of whale (large bitcoin holders) addresses has been stagnant. In January, people holding more than 100 bitcoins were still "wait-and-see" about continuing to store coins, while players with 10 to 100 bitcoins continued to store coins.

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The number of addresses with 1,000 to 10,000 bitcoins and the price of bitcoin fluctuated. Image source: Kraken

The above situation changed in February 2020. Kraken said the number of players holding 100 to 1,000 bitcoins surged before the Bitcoin price rose in January. The exchange calls it a repeat of the historical model, that is, the mood of players with 10 to 100 bitcoins in the hoarding stage will continue to 100 to 1,000 bitcoin players later.

Kraken wrote:

This may mean that the above hoarding mood will immediately cause resonance among players holding 1,000 to 10,000 bitcoins, allowing them to start entering a new stage of hoarding.

Xiaoyu (a player holding fewer Bitcoins) is also hoarding Bitcoin

Players are constantly hoarding coins to show that people are treating Bitcoin as a value storage asset. The price of bitcoin rose from $ 3,120 in December 2018 to just over $ 10,000 in February 2020, further illustrating that people have increased their exposure to this alternative asset.

Just last month, blockchain intelligence company Glassnodes pointed out that retail players also have a similar "coin hoarding" mood. It said that since the formation of the bottom range of bitcoin prices in 2018, the number of addresses with a balance of 0.1 to 1 bitcoin has increased by 10%.

Today, large coin hoarders have also experienced a similar emotional change, and people hope that the price of bitcoin will continue to rise until 2020.

Kraken predicts:

We expect that the above coin hoarding will end in the next few weeks or months, and the volatility of Bitcoin price will reappear. This kind of dynamic change of "coin hoarding before volatility" will further absorb market liquidity and cause a situation of oversupply in the future.

What factors are driving the Bitcoin whale's continuous hoarding of coins

Kraken pointed out that in the context of a series of macroeconomic events, people's demand for Bitcoin as a safe-haven asset has continued to rise.

On January 3, shortly after the U.S. killed a senior Iranian military official, the correlation between Bitcoin and some major hedging and high-risk instruments increased. When the event dust settled, China's new coronavirus epidemic raised concerns. At the same time, global stock markets have fallen to record lows, and demand for hedge assets has increased significantly.

Kraken found that the price of bitcoin soared as the central bank tried to contain the economic crisis by injecting $ 170 billion into the financial system. This could affect the risk exposure of large investors in continuing to hold cryptocurrencies and further affect the price of Bitcoin.

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