Big bitcoin (BTC) buyers used the market crash in March to increase their holdings, while the biggest "whales" became more active last summer, a new report suggested.
After exploring the transaction data on the Bitcoin blockchain that occurred between January 2020 and early August, OKEx Insights and blockchain data signing Catallact have reached the following conclusions:
- Small retail investors were 'shaken' a bit during the COVID-related panic in March and subsequently took a wait-and-see approach once the price of BTC returned to its pre-crash levels in May.
- Medium-sized BTC transactions declined after the collapse in March and in tandem with the Bitcoin halving, but increased steadily throughout the summer. This implies that there was some buildup from large retailers and BTC miners.
- The big players became very active after the crash, while the big deals increased steadily during the summer.
- Larger buyers became more active during the BTC price consolidation this summer.
This is how it looks in the charts:
Number of transactions less than 0.1 BTC, daily
Number of transactions between BTC 10 – BTC 100
Number of transactions between BTC 100 – BTC 1,000
Number of transactions between BTC 1,000 – BTC 5,000
“This upward trend suggests the possibility that institutions and / or large players were busy accumulating BTC as economic stimulus measures from central banks spurred the purchase of hard assets. However, because we cannot clearly differentiate what actual activity took place from the number of transactions alone, this only remains a speculative possibility, ”the researchers said.
Number of transactions between BTC 5,000 – BTC 10,000
According to the researchers, these spikes during the summer could be explained by one or more major cryptocurrency exchanges shuffling coins in various wallets or alternatively, BTC whales accumulating or distributing large sums of BTC.
“The second option, particularly regarding the possibility of accumulation, would fit into the narrative that has been in place since the COVID-19 pandemic wreaked havoc on global markets, that is, that institutional investors like Paul Tudor Jones and corporations billions of dollars as MicroStrategy They have been allocating wealth to BTC as a hedge against fiat money inflation, ”the researchers said.
In any case, they emphasized that chain data cannot tell us everything, and analysts must be careful in trying to draw conclusions from it.
"For example, we can examine large BTC transactions, but we cannot clearly differentiate how many of them are purchases, sales, aggregate transaction movements of cryptocurrency exchanges, or large movements of institutions and funds," the researchers said.