Key Points
- Bitcoin’s recent strong performance is attributed to increased demand from institutional investors and whales.
- Bitcoin’s hash rate has reached a new all-time high, indicating heightened activity around the cryptocurrency.
Bitcoin, or Bitcoin (BTC), has been experiencing a surge in activity, particularly from institutional investors and whales. These two groups are known to significantly influence the price of Bitcoin.
Bitcoin’s Recent Upswing
Over the past six weeks, Bitcoin has demonstrated a robust upside, after struggling to maintain a price above $60,000. This smooth rally is believed to be a result of increased institutional interest in the cryptocurrency.
Data from Glassnode indicates a rise in holdings of entities with over 1,000 BTC, surpassing levels seen in May 2022. This suggests that these large-scale holders have been actively accumulating Bitcoin.
Whale Holdings Reach New Highs
Whale activity has also been on the rise, with the latest data showing that whales hold over 670,000 BTC, the highest amount ever recorded. This is seen as an indication of accumulation in anticipation of a major price movement.
The increased activity has led to a surge in Bitcoin-related transactions, which has necessitated an increase in network capacity. In response, Bitcoin miners have ramped up their operations, pushing the Bitcoin hash rate to a record high of 918.72 TH/s.
The impact of this surge in demand is reflected in Bitcoin’s price movement, which has been following a bullish flag pattern since March. This suggests potential for further upside in the coming months.
While the accumulation by whales and institutions could signal significant price movements, it also implies the possibility of extreme volatility in the short to mid-term.