With bitcoin registering world swings in recent days, the impact of the price movement is reflected in the amount of the asset held by the top wallets (bitcoin richest addresses)
According to data compiled by cryptocurrency trading simulator Crypto Parrot, 15 of the top 100 addresses recorded outflows of 43,161 in bitcoin between April 25 and May 25, 2021. In comparison, the value represents an increase of 115.44% from the eight wallets that recorded a decrease in bitcoin holding between December 11, 2020, and January 11, 2021, as revealed in previous research.
Elsewhere, between April 25 and May 25, 2021, bitcoin addresses that accumulated more bitcoin stood at 29. The figure reflects a drop of 30.66% from 36 wallets that held 354,381 bitcoins between December 11, 2020, and January 11, 2021. Furthermore, more than half of the wallets at 56% did not record any changed bitcoin holding between the two periods.
Bitcoin price drops present buying opportunity
The change in bitcoin holdings by the top 100 wallets correlates with the asset’s recent price drop. According to the research report:
“Overall, the dip in bitcoin price always presents a buying opportunity for investors who aim to profit in the future. This also explains why the 56 wallets have remained unchanged since they might be betting for long-term gains. The inactivity also shows the large whales have no intention of selling.”
Furthermore, the existence of whales comes with a significant impact on the entire crypto market. The research report notes that:
“Although there is a shift in the number of wallets that decreased and increased their bitcoin, the holders still influence the market. When a lot of bitcoin is held by a few addresses, it can lead to centralization of the asset and lower liquidity when unmoved for long. As a result, the market usually encounters volatility when the asset is moved in a single transaction.”
In general, a comparison of bitcoin wallet holdings reflects how whales have reacted to the market swing around bitcoin.
Read the full story with statistics here: https://cryptoparrot.com/article/buying-power-of-the-100-bitcoin-richest-addresses-decline-30-since-the-year-s-start