The crypto market looks great today, and Bitcoin seems on its way to recovering the recent losses.
Also, the adoption of the coin seems to be going great this year, despite the global crisis – which might have actually helped, because people are seeing a safe haven in Bitcoin these days amidst the dollar printing spree.
There’s a surge in 5,000 to 10,000 BTC transactions
More than that, it’s been recently revealed that on-chain analysis suggests that the largest players in the industry aka the crytpo whales came out of hibernation amid a surge in 5,000 to 10,000 BTC transactions.
The online publication that Daily Hodl revealed that in a new report, crypto exchange OKEx teamed up with blockchain firm Catallact in order to study the behavior of large-scale investors this year.
This report reveals that whales have been popping up between May to July as the number of 5,000 to 10,000 BTC transactions spiked while Bitcoin’s price consolidated around $10,000.
“This upward trend suggests the possibility that institutions and/or large players got busy accumulating BTC as economic stimulus measures from central banks spurred on the purchase of hard assets. However, because we cannot cleanly differentiate what actual activity took place from the number of transactions alone, this only remains a speculative possibility,” according to the notes from this report.
Potential explanations for the rise in whale activity
It’s been also revealed that the crypto exchange is providing some potential explanation for which this could have happened.
The first one says that one or more crypto exchanges have been engaged in moving the coins into a number of wallets for security purposes.
OKEx also speculated that institutional entities and whales accumulated or unloaded massive BTC amounts while the king coin was hovering around $10k due to assumptions that the price will suddenly drop or rise.
More than that, they could have been also interested in buying the dip after they were shaken by the whole pandemic.
We recommend that you check out the complete report.
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