Featured: Bitcoin, Massive BTC buying, Tesla, HODLERS, Digital Gold
Bitcoin after rallying ~$30,500 in the past 90 days, and yielding an astronomical return of ~265% finally faced resistance at 42000 levels. Bitcoin with the current market capitalisation of ~$629.3 billion surpassed the market capitalization of Alibaba (~$613.99 bn) establishing itself as the 8th most valuable asset class. The current bull rally gave manifold returns to the investors as the market capitalization of BTC increased by $745.3 B, that is more than the MCap of Tencent ($734.93 B), the seventh-largest company in the world.
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BTC On-Chain Analytics Simplified
Top 15 Bitcoin addresses hold ~5.80% of the outstanding Bitcoin supply valued at $36.48 B worth of BTC. On the flip side, the top 100 richest Bitcoin addresses have accumulated 16% more Bitcoin over the past 30 days that depicts their bullishness in the digital gold. Thus, 334 K more BTC worth $11 billion were bought in the past 30 days. This indicates that the HODLERS have utilised the opportunity to their advantage, and have filled their bags.
The cumulative sum in dormant Bitcoin addresses as per Bitinfocharts.com has increased from 13.07 M to 17.1 M, that is an increase of ~29% as compared from Jan1, 2020. This reveals that ~8% of the BTC in circulation is only transacted on the exchanges while the biggest slice of the circulating supply is lying ideal in the BTC addresses and the positions have not been squared off during the fall of ~27.5% from the ATH. The above data suggest that the crypto community truly supports the vision of decentralization of trust that Bitcoin holds.
Among the top 100 BTC addresses, 64 addresses have never transacted a single Satoshi out of their wallet. This gives us an idea that the current Bull rally is not fueled by the hype around Bitcoin, but the use case to function as a peer to peer electronic cash system, and the value it encompasses due to its fixed limited supply have magnetised investors from around the world to invest in it.
Conclusion
In the past 1 week, 97,091 BTC were accumulated by the top 100 addresses. If we consider that a unit of BTC was bought at an average price of $35 K, then a whopping $3.39 B was injected in the Bitcoin market capitalisation when the Bitcoin’s price nose-dipped, the people got trapped in the rumours that the whales have started to liquidate their holdings and BTC’s price bubble is about to burst. However, on the contrary, interpretation of the data suggests that the whales foresee potential investment opportunity in Bitcoin, and have concentrated ~5.22% of the total circulating supply which indicates the rising interest of institutional investors which could propel the rally to new heights.
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