August 25, 2020
New data concerning the composition of Bitcoin holders shows that wealthy investors are pouring money into the digital asset quickly.
This was revealed by the numbers of wallets holding over 1,000 BTC that have been shooting up higher over the past several days, weeks, and months.
The prompt growth that this metric has shown is illustrative of the growing demand for “hard assets” during a time of unparalleled money printing.
There is a substantial probability that this trend will only continue picking up steam as the shortage becomes more and more anticipated.
Number of Wallets with Over 1,000 BTC Grows as Wealthy Investors Turn to Bitcoin.
Bitcoin’s price action over the past weeks and months has been both sturdy and constant. It is with the cryptocurrency seeing multiple prolonged consolidation periods that have been trailed by upside movements.
This price action has been strikingly comparable to that seen by gold, as investors consider BTC a safe-haven investment.
It now seems that wealthy investors increasingly recognize that Bitcoin’s absolute shortage makes it the flawless asset to hold during extensive money printing and inflation.
Its relationship to gold has also made it an eye-catching asset due to it being a hedge against financial uncertainty.
According to recent data from the analytics platform Glassnode, the number of Bitcoin wallets holding over 1,000 BTC has been a sharp rise in recent times, with this data likely being emblematic of wealthy investors’ looking to gain exposure to save-haven assets.
As reported in recent data from the analytics platform Glassnode, the number of Bitcoin wallets holding over 1,000 BTC has been a sharp rise in recent times. This data is likely to be emblematic of wealthy investors looking to gain exposure to safe-haven assets.
Data aggregator Unfolded spoke about this data in a recent tweet, saying:
Some Institutions Still Remain Extensively Short on BTC
Regardless of the large investors pouring money into Bitcoin at a quick pace, institutional investors on the CME have more short exposure to Bitcoin than they have ever had previously.
Unfolded also spoke about this in the latest post while referring to the latest Commitment of Traders Report, mentioning:
This accumulation trend appears to confirm that Bitcoin is being embraced as a haven asset, which increases its mid-term outlook, given the global economic condition.