Nearly 18,500 Bitcoins (BTC) Leave Exchanges In A Week As Whales Surpass Mid-Tier Addresses For First Time

By Bhushan Akolkar
Published February 2, 2021 Updated February 2, 2021
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Nearly 18,500 Bitcoins (BTC) Leave Exchanges In A Week As Whales Surpass Mid-Tier Addresses For First Time

By Bhushan Akolkar
Published February 2, 2021 Updated February 2, 2021

Bitcoin (BTC) price has surged 2% today and is currently eyeing a move above $35,000 levels. At press time, BTC is trading at $34,961 levels with a market cap of $654 billion. While BTC has consolidated for a long time between $31K-$35K, it looks like we are on the verge of starting a new bull run.

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Bitcoin supply at exchanges has hit its lowest levels in the last 2.5 years meaning we are facing a big-time liquidity shortage. Over the last week, nearly 18,500 Bitcoins worth $625 million have moved off exchanges. A majority of this comes from a single Bitcoin whale that is reportedly Guggenheim Partners. Interestingly, Bitcoin (BTC) alone accounts for a massive 92% of the total crypto inflows over the last week.

On the other hand, Bitcoin’s stablecoin supply ratio (SSR) has also touched a one-month low and continues to decline very fast this year in 2021. Thus, stablecoins continue to have a high buying power over Bitcoins hinting at an increased potential for upward BTC price movement.

https://twitter.com/Bloqport/status/1356563328143867907

Bitcoin Whales Addresses Surpass Mid-Tier Addresses

On-chain data provider Santiment notes that Bitcoin whales (over 1,000 BTC addresses) have surpassed mid-tier addresses (1-1000 BTC addresses) for the first time in history.  While small players continue to resolve to profit-booking.

On the other hand, Bitcoin’s network activity has also reached an all-time high. As on-chain data provider Glassnode reports,

“In January, more than 22.3 million unique addresses were active in the network sending or receiving $BTC – the highest monthly number in Bitcoin’s history to date”.

Bitcoin Adoption Similar to Early Days of the Internet

As new users continue to join the Bitcoin blockchain, we are just entering into the early days of the Bitcoin adoption curve. Popular crypto analyst Willy Woo notes that Bitcoin (BTC) has the same users as the internet in the early days of the internet in 1997. However, Bitcoin’s adoption speed is nearly 4x higher. Woo predicts that Bitcoin will hit 1 billion users in just the next 4 years.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
725 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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