Weak Hands Are Selling, But A New Wave of Fresh Money Is Entering the Market
With Bitcoin movements going berserk, having smashed through $20,000 and continuing its ascent above $23,000 for now, the number of Bitcoin addresses holding at least $1 million has gone parabolic.
With an increase of 150%, the millionaire addresses now stand at 66,540, as per Glassnode.
“BTC crossing $20k has turned all early miner addresses (50 BTC block rewards, unspent or lost) into millionaire addresses.”
It also makes sense that all this craziness has some people getting itchy to take off some profits.
All Exchanges Inflow Mean has hit a nine-month high, the last time we saw such incoming levels was during March sell-off.
While “weak hands” seem to be selling their bitcoin to the institutional investors, demand outstrips the supply.
The BTC price is not giving any indication of stopping anytime soon. Everyone has come out of the woods to announce their moon targets, which are still not whacky enough for the crypto market, to be honest, promoting their Bitcoin investments.
Massive OTC deals are still ongoing, and “Only 5% of the network transactions are used for exchange deposits/withdrawals. Current institutional buying is just a start,” noted Ki-Young Ju, CEO of data provider Crypto Quant.
Massive @CoinbasePro outflows = OTC deals
It looks like massive Coinbase outflows usually go to their new cold wallet for custody/OTC that held 6000-8000 $BTC.#Greyscale uses #GenesisTrading for buying Bitcoins, and #GenesisTrading uses Coinbase Custody. pic.twitter.com/iFobwtf1gK
— Ki Young Ju 주기영 (@ki_young_ju) December 17, 2020
Yesterday, Block.One, the company behind EOS also announced that they had increased their BTC position. After the biggest IPO of $4 billion, it makes sense the company will be utilizing the money by betting on the “fastest horse.”
Interestingly while weak hands are selling, more than 3.5% of all Bitcoin has also moved into the 2-3year age band.
However, this corresponds with the December 2018 capitulation, where bitcoin's price crashed from $6,300 to $3,200 over a few weeks, as per Unchained Capital. Charles Edwards, the founder of Capriole Investments, said,
“The whole world is in disbelief right now. A new wave of fresh money is entering the market. For every dollar Bitcoin rises above 20K, global interest and demand increases exponentially.”