Institutional Investors Actively Accumulate Bitcoins, While Whales Control Over 66% of the Circulating Supply
Date: 2023-10-02 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Accumulation of Bitcoin by large investors and their impact on the market
Large investors continue to actively accumulate Bitcoins, controlling over 66% of the circulating supply of this cryptocurrency, according to data from the analytical company Santiment. This trend indicates a sustained interest in digital gold among institutional players.
Investors with large wallets containing from 100,000 to 10 million USDT are also increasing their holdings, preparing for active participation in purchases. As of the time of writing this article, their reserves amount to about $15 billion, reaching a record level in the last 6 weeks. This suggests that high-net-worth investors see potential in the future growth of Bitcoin.
The impact of institutional decisions on the Bitcoin market
Interest in cryptocurrency intensified after a major investment company, BlackRock, applied for the registration of a Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC). This triggered a domino effect, with other companies also submitting applications. However, the SEC's decision to postpone the consideration of all spot Bitcoin ETF applications temporarily froze these plans and led to a correction in the price of Bitcoin, although the price later recovered.
This example highlights how institutional players can have a significant impact on the cryptocurrency market. Their actions and decisions can lead to both price increases and decreases in cryptocurrencies, making them key participants in the industry.
The role of whales and sharks in the cryptocurrency world
The terms "whales" and "sharks" in the context of cryptocurrencies refer to large investors who hold significant amounts of cryptocurrency and can influence the market with their actions. Cryptocurrency whales are addresses and wallets that hold more than 1,000 Bitcoins, while crypto sharks are considered investors with a balance of more than 500 BTC.
Investors at this level can manipulate the market by affecting cryptocurrency prices with their large buy or sell orders. Such actions can cause changes in market sentiment and impact the liquidity of certain coins.
It is important to note that cryptocurrency whales and sharks can use various tactics to maintain anonymity and conceal their assets. Their decisions and actions remain one of the key factors influencing the dynamics of the cryptocurrency market.
