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Why Bitcoin 'Whales' Are Not Ready To Cash Out, Even At All-Time Highs

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Why Bitcoin 'Whales' Are Not Ready To Cash Out, Even At All-Time Highs

Bitcoin (BTC) addresses that contain more than 1,000 BTC  — worth $38.41 million at press time — now stand at an all-time high of 2,334, CoinDesk reported Thursday.

What Happened: “Whale” accounts, or accounts with large BTC holdings, have risen 3.7% since December when the number stood at 2,221, according to CoinDesk.

Compared with the previous 2017 bull market, the large accounts have grown by 30%.

There are at least 6,633 addresses that hold more than $10 million in BTC, according to BitInfoCharts data. 

On Wednesday, the combined market value of cryptocurrencies crossed the $1 trillion mark, with BTC alone enjoying a market cap of $685.76 billion.

CoinDesk Research’s quarterly review report noted that the dip in Bitcoin seen at the end of December evoked “little interest” in profit-taking on part of large holders.

Why It Matters: Bitcoin touched an all-time high of $40,180.37 on Thursday and has returned 32.35% since the new year began.

When asked on CNBC’s halftime show on Thursday where Bitcoin was going, Chamath Palihapitiya, Chairman of Virgin Galactic Holdings Inc (NYSE: SPCE) said, “probably going to a hundred then 150 then 200,000.”

“In what period I don't know five years, ten years, but it's going there and the reason is because every time you see all of this stuff happening it just reminds you that wow our leaders are not as trustworthy and reliable as they used to be,” said the billionaire investor.

Palihapitiya described the apex cryptocurrency as “insurance” and said it gave people access to an “uncorrelated hedge and it's going to eventually transition to something much more important.”

The "SPAC king" began investing in Bitcoin in 2012 and has since sold all his individual bitcoins, instead choosing to invest through companies that own cryptocurrencies.

See Also: MicroStrategy Now Holds 70,470 Bitcoin After Spending $1.1B in 2020

Price Action: Bitcoin traded 2.84% higher at $38,338.34 at press time. On Thursday, Grayscale Bitcoin Trust (OTC: GBTC) closed 2.37% higher at $44.97 and Grayscale Ethereum Trust (OTC: ETHE) closed 1.18% lower at $14.61.

 

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Posted-In: Bitcoin Bitcoin Whales Chamath PalihapitiyaCryptocurrency Long Ideas News Markets Trading Ideas Best of Benzinga

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