Whales and Institutional Investors Remain in Bitcoin

 Whales and Institutional Investors Remain in Bitcoin

The latest metrics show a different approach among institutional, large and retail players. Small speculators and small volume traders follow the market: they buy on the rally and get rid of coins when they reach round levels. Whales enter the market on a large scale in deep corrections and partially unload as prices rise. In 2020, the most conservative group is institutional investors. They continue to increase volumes despite the difficulties of breaking the $ 20,000 mark.

According to the CryptoQuant analytical group, in the spring of this year, bitcoin whales prevented the price of Bitcoin from falling below $ 4,000.

Subsequently, they unloaded some of the volumes on the rise in price, which was picked up by traders and institutional investors. However, it should not be assumed that the whales sold a significant amount. This year, the number of wallets from 1,000 BTC has grown by 17% or 302 units, and their total number has reached 2052.

But while the whales have partially locked in their profits in 2020, institutional investors continue to pursue a buy-and-hold strategy. Last week we talked about the Grayscale Investments crypto fund, which continues to accumulate Bitcoin and has already exceeded $ 10 billion. Last Friday it became known that MicroStrategy, instead of the planned $ 400 million, raised $ 650 million by issuing bonds. All funds will be used to buy Bitcoin.

On December 10, Twitter CEO Jack Dorsey revealed that his payment company Square had bought 4,709 BTC. At current prices, the volume of investments exceeds $ 90 million.

The last major institutional player announced was Massachusetts Insurance Company Massmutual. Bitcoin was bought at a price of $ 18.3 thousand, and the total investment amounted to $ 100 million. The company's investment fund exceeds $ 235 billion, but it was the first time it invested in Bitcoin.

According to Cryptoquant data, no major institutional investor has yet taken profits. It is this group of trading participants that provides the greatest price support and does not allow Bitcoin to move to a large-scale correction. The longer the cryptocurrency stays in place, the more investors will join the blockchain in the hope of continued growth. The growth in the volume and number of active wallets will sooner or later lead to an exit above the coveted level of $ 20,000.