New Delhi (CoinChapter.com) — In positive news for Bitcoin, the 4th largest Bitcoin whale reportedly bought 988 coins on Tuesday. The huge buy order came just two days after another purchase of 926 coins by the same person. Reddit user u/pinoygs broke the news first.
A bitcoin whale is a person or entity that holds large amounts of bitcoin. Whales hold enough cryptocurrency that their actions can manipulate the market. Just like real-life whales, the movements of these big fishes disturb the waters for smaller fish.
Crypto whales own a significant amount of a particular cryptocurrency. For Bitcoin, about 1000 individuals own 40% of the market. Their importance has increased after the recent crypto fall. So, positive trades from such individuals can help lift crypto prices and help arrest the downward trend.
The top 100 Bitcoin wallets hold around $115.4 billion worth of Bitcoin, around 15.2% of all bitcoins. That can lead to wealth concentration in the cryptocurrency sector, hindering its decentralization vows to the small traders and investors.
Positive Forecast for Bitcoin
Following the May 19 crash, the crypto market has been recovering. Many altcoins have reported positive trends, with some like MATIC gaining almost 100%.
Also read: 3 Reasons Why Polygon’s MATIC Could Retest Its All-Time High
Bitcoin targets $42000 benchmark. Source: BTCUSD on Tradingview.com
Bitcoin has shown an upward rally as well. It breached the $40,000-mark today. BTC gained about 12% in the last 20 hours to reach $40,970 before correcting to $39,827. Several analysts predict a recovery on the horizon for the OG crypto. At the time of writing, BTC was trading at $39,749.
Crypto trader and co-founder of Zavviigaming, Posty was optimistic about BTC reclaiming the 42K threshold in the coming days.
Analyst and educator Koroush AK believes that the recent rally is a good indicator. He, however, will stay bearish till BTC crosses the $45,000 milestone again.
Most analysts were optimistic about the rally but still hinted at staying cautious. Crypto trader Cold Blooded Shiller stated that there isn’t enough data. So, it isn’t easy to speculate if this rally is a bullish recovery or not.
The Bitcoin market crash snowballed into a complete crypto-market fall and cost $830 billion to investors. Tesla’s turnaround on accepting Bitcoins and China’s crackdown on crypto mining caused the downfall.
Also read: XRP, Dogecoin Hold Gains As Michael Saylor Eases Elon Musk FUD
Ironically, it may be Elon Musk behind the recent rally of crypto markets. The Tesla CEO met with leading North American Bitcoin miners to discuss green energy sources for mining. Michael Saylor, CEO of MicroStrategy, hosted the event.
Nevertheless, his decision was criticized as being against the decentralizing principle of crypto. However, it seems to have played in favor of cryptocurrency markets. As news of the meeting came out, most cryptocurrencies showed an upward trend.
A Delhi based content writer, I did my bachelors in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.
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