According to Dan Tapeiro, a well-known macro investor, this period is comparable to the early months of 2017: Bitcoin “could grow 5-8 times from current prices”
Bitcoin whales (BTC) are clearly expecting a significant price increase in the future, as the number of wallets containing over 1,000 BTC ($35 million) reaches an all-time high.
Data provided by on-0chain analytics resource Glassnode confirms that, as of 20 January, there are 2,400 wallets with huge balances.
Whale wallets at record highs
In 2021 alone, 164 new 1,000+ BTC entities were created, together controlling around $6 billion. While these developments don’t necessarily indicate whales adding to their positions, the numbers seem to prove a theory that we are witnessing a transfer of wealth from weak to strong hands.
As reported by Cointelegraph, the category of wallets with over 1,000 BTC has been the only one to increase recently, while the number of smaller wallets decreases.
Although some have urged HODLers not to sell their reserves to whales, others argue that these large, newly created operators will aggressively protect the value of their investment.
“We have seen large inflows to whale wallets around $29,314. They will protect their BTC… This should act as a strong support for Bitcoin in the short term, and hopefully in the long term as well,” monitoring resource Whalemap summed up on Twitter this week.
Bitcoin wallet with 1,000 BTC or more
Bitcoin wallet with 1,000 BTC or more. Source: Glassnode
Bitcoin remains at a crossroads in terms of price action in the spot market, which has been confined to a range between $30,000 and $40,000 for days now. At the same time, institutional giant Grayscale unveiled its largest daily purchase of BTC: over 16,000 BTC, equivalent to about $700 million.
The “strong part” of the bull market has yet to begin
Looking ahead, however, indicators continue to reveal a huge upside potential for BTC/USD.
After Bitcoin’s thermocap suggested that the price is in the early stages of a bubble setup, volatility now suggests that gains in the market are only just beginning. According to macro investor Dan Tapeiro, early 2017, the start of a nearly year-long bullish trend, appears to be a benchmark.
Volatility of Bitcoin/S&P 500 vs. chart of BTC/USD
“Phenomenal chart. The strong part of #Bitcoin’s rise hasn’t started yet. Chart suggests we are in a period equivalent to Q1 of 2017,” Tapeiro commented, sharing a chart depicting Bitcoin’s 90-day volatility relative to the 260-day volatility of the S&P 500:
“The volatility parameter plots peaks at the end of movements… now it is still close to the lows. Hard to imagine that in 2021 #BTC could grow 5-8x from current prices. It simply pays to #HODLare.”