Significant Amount of Inactive Bitcoin Wallets Became Active Shortly Before Recent Crypto Market Boom
Current reports have it that about a fortnight before the recent boom in the prices of cryptocurrencies, a large number of wallets that were inactive suddenly became active. The period ended with Bitcoin (BTC) reaching its 2019 highest price so far, of $5,000 on the 2nd of April.
According to reports, almost half of all digital wallets that held Bitcoin were tagged inactive before the surge, for a period of time ranging from one month to about six months. The reports were made public by Flipside Crypto, a market intelligence firm.
Eric Stone who is the co-founder and also the head of data science at the intelligence firm, has expressed that
“there are more people warming up to the idea of buying Bitcoin.”
Furthermore, Eric said that changes in price could easily be attributed to activity from major whales and other major investors who are taking a leap into the business. It’s important to note here that sometime in the fall of 2018, Bitcoin surged 40 percent and was probably due to these whales. However, this particular case could be credited to not just the whales but also the smaller investors.
According to another co-founder and Chief Executive Officer also at Flipside Crypto:
“We see this move much more valid than a few whale moves in October. This probably signifies a change in perception or confidence in this asset class.”
Possible Algorithmic Trading
There are also some reports that connect the recent surge in the market to algorithmic trading. This is a system through which certain automated software is employed to identify trends in a bid to “advice” on specificity on trades to be made, regarding time of the trade and what exact trades.
The price surge may have been caused by a trade worth about 100$ million, spread across three exchanges. The amount of Bitcoin was 20,000 on a transaction which was handled by Coinbase, Kraken and also Bitstamp.