Bitcoin has been caught in a steady uptrend in recent weeks that has allowed it to sever its correlation with traditional financial markets. In fact, at just under $ 13,100, the flagship cryptocurrency posted its second-highest weekly close since early 2018 on Sunday.
As the price of bitcoin soared, so did the number of whales. According to data from analytics provider Glassnode, BTC's whale population hit a new all-time high yesterday. The number of addresses with at least 1,000 BTC jumped to 2,231, the highest level seen since September 2016.
In the last week alone, the number of BTC whales increased by an impressive 2.6%. Likewise, the price of the world's most valuable cryptocurrency increased by about 14%. The bullish momentum was further fueled by PayPal's announcement of upcoming cryptocurrency support.
Why is BTC's whale population increasing?
In the crypto community, the term whale is used to describe investors with significant BTC holdings and who have the ability to move the market in any direction. Since the beginning of this year, this particular group of investors has grown more than 14%.
Chain analyst Willy Woo He suggested that the spike in the number of whale addresses could be because high-net-worth individuals and funds view Bitcoin as a potential hedge against expansive money printing and real-money asset gambling.
In fact, multiple publicly traded companies and individual investors with large amounts of money have revealed investments in the leading cryptocurrency in recent months. The Wall Street Veteran Paul Tudor Jones was the first to publicly disclose its investment in BTC in May. Since then, several companies have bet on cryptocurrency and it seems that this trend is just beginning.