In this last part of 2021, it seems that large cryptocurrency investors, the so-called whales, are again buying Bitcoin, mainly due to fears of a sharp rise in inflation, and thus in 2022, they could contribute to the next bull run of the BTC price.
Summary
Bitcoin whales accumulate
According to data from Chainalysis, a cryptocurrency statistics and advisory firm, large investors holding at least 1,000 BTC would have collected 142,000 Bitcoin in the second week of December, bringing the total amount of Bitcoin in their possession to nearly 200,000 BTC, the highest in 2021.
The report from the research firm:
“It’s a confirmation of the view that Bitcoin is seen as digital gold, or perhaps institutions are just making a longer-term trade on the bitcoin price.”
The fact that precisely whales have entered the market again to support quotes would be a factor that could indicate that an upcoming Bitcoin rally is possible in the new year, supported by strong market personalities.
All this is also supported by the fact that, usually, January has always been a favorable month for Bitcoin quotes, which in last year rose by 15% while in 2020 by 30%.
According to cryptocurrency statistics firm BitInfoCharts, the third-largest Bitcoin holder in December alone would have purchased around 3,000 new Bitcoin, taking advantage of November’s market declines, thus coming to hold around $3 billion in Bitcoin.
Microstrategy, the world’s largest Bitcoin holder, also recently announced that it had purchased another 7000 Bitcoin in late November, bringing its value in bitcoin to over $3.5 billion.
Whales and the price of bitcoin in 2022
For Marcus Sotiriou, a financial analyst at UK-based digital asset broker GlobalBlock, this would indicate that we are not at the end of a bullish cycle, which in fact is expected to continue with greater strength in 2022.
This analysis also lends strength to the data on Bitcoin derivatives, which indicates that investor bets are for a rise in Bitcoin quotes in the short term.
On the other hand, those Bitcoin quotes are greatly influenced by large investors, or whales, as they are called in the cryptocurrency environment, following the data from the company Flipside Crypto, which denotes that just over 2% of anonymous accounts on cryptocurrency blockchains would control about 95% of digital assets.
Eric Stone, head of the company’s research team, said:
“The most likely whale story today is that they will cautiously liquidate relatively small amounts of BTC over time, rather than risk a supply shock by liquidating larger chunks all at once.”
Buy the dip
And this is also why it indicates that perhaps only the intervention of large Bitcoin holders can be the driving force behind a possible next Bitcoin rally, as early as January 2022, by adopting the strategy of “buy the dip,” i.e., buying on market declines.
That’s what Microstrategy has done in recent years or as the government of El Salvador has also done, which announced at the end of November that it had bought 150 Bitcoins, taking advantage precisely of the consistent market declines in that period.
