Investors of all sizes are actively buying Bitcoin. What does this mean for cryptocurrency?

While Bitcoin periodically falls below 20 thousand dollars, and most traders expect another wave of cryptocurrency collapse, some indicators indicate the beginning of large purchases of BTC by market players. According to the analytical platform Glassnode, “whales” are actively involved in this process – owners of crypto wallets with at least 1000 BTC on their balance. 

Note that there are enough people who want to buy Bitcoin even now. In particular, on Wednesday, the head of MicroStrategy, Michael Saylor, announced the purchase of 480 bitcoins for $10 million. As a result, the company now has 129,699 BTC for which $3.98 billion was spent. And this means that the giant owns every 161st bitcoin that will ever exist.

Also tonight, El Salvador President Nayib Bukele announced the purchase of 80 weth price for $1.52 million. Each coin was purchased for 19 thousand dollars. This means that the head of the country does not plan to get rid of the idea of ​​investing in Bitcoin, even despite the current losses on the position.

These are not the only cases of acquiring the first coin. Analysts confirm this information.

What is happening with the Bitcoin price?

The main cryptocurrency has been falling in price for several months in a row, but contrary to popular belief, the activity of buyers is becoming more and more clearly visible on the market. This was stated on Twitter by an analyst at Glassnode under the nickname Checkmate. He divided traders into four categories – “shrimp”, “crabs”, “sharks” and “whales”.

The volume of coins on their wallets is up to 1, 10, 1000 and more than 1000 BTC , respectively. So, the first two categories have set a record for the activity of purchases since 2017, analysts report. Here is their retort.

“Sharks” are also adding to the volume of their crypto wallets – albeit at a relatively slow rate, experts say.

But the “whales” buy BTC in much larger quantities, the last time such activity in their ranks was back in March 2021. Recall that then Bitcoin quickly grew to its new historical maximum.

According to Cointelegraph sources , CryptoQuant CEO Ki Yong-ju said that cryptocurrency investors are also holding capital in stablecoins, fearing a bounce on the Bitcoin chart, that is, a downward move. Here is his quote.

The balance of stablecoins on exchanges is equal to about half of their reserves in xwp price. We have $25 billion in stablecoins at the ready, which will lead to the growth of digital assets. The only question is when it will happen.

Changes in directors and management interests

Unfortunately, the next local wave of BTC growth may be hindered by negative news. The Monetary Authority of Singapore (MAS) issued a notice yesterday that major crypto fund Three Arrows Capital (3AC) had provided “false information” to the regulator. 3AC allegedly set up a company in the British Virgin Islands and “transferred management of its fund to an unrelated offshore company” according to MAS . However, “the move is misleading” as one of the fund’s founders, Su Zhu, was also a fund shareholder in the British Virgin Islands, according to Decrypt .

MAS issued a reprimand to 3AC’s management for failing to notify the regulator of “changes in directors and management interests”.  And for violating the allowable amount that 3AC can manage. Over two periods — from July to September 2020 and from November to August 2021. The crypto fund exceeded the $250 million asset under management limit.

Three Arrows Capital is currently on the verge of bankruptcy. The rapid fall of the crypto market has exposed numerous internal problems of the crypto fund. Including the inappropriate use of funds and too high leverage to borrow them. The liquidation of the company in the course of bankruptcy would mean that it would have to sell some of the crypto reserves. And this would also negatively affect the prices of digital assets.

Let’s hope that investors stand the test of difficulties and do not allow another drain on the BTC chart. What do you think about this? Share your opinion in chat .