After the strong price fluctuations of the past weeks, bitcoin is currently hovering around the psychologically important mark of 50,000 dollars. The fact that large wallet addresses tend to buy rather than sell on dips below this level is optimistic for the further development of the cryptocurrency.
According to information from the industry portal CryptoQuant, data from the Bitcoin network indicates that the owners of large Bitcoin holdings - so-called "whales" - tend to buy more. Ki Young Ju, CEO of the company, has identified the $48,000 range as a level for re-buying by institutional buyers. In addition, there have recently been record outflows from the crypto exchange COINBASE Pro to private wallets at prices at this level, he writes in a tweet.
https://twitter.com/ki_young_ju/status/1366984863127986180
The fact that large investors are currently collecting additional coins rather than taking profits expresses their hope that prices will continue to rise in the medium and long term. Especially the growing interest of institutional investors and large companies is currently creating an unprecedented demand situation for Bitcoin. The last record rally in 2017 was almost exclusively driven by private investors.
In view of the ever-faster increase in the money supply of the euro, dollar and other currencies, as well as growing concerns about rising inflation, digital currencies could become even more important in the near future - whether as a financial investment, diversification object or inflation hedge.
