Bitcoin Whales ‘Beginning to Take Interest’ as $BTC Move Past $19,000 Mark
Large Bitcoin ($BTC) investors, also known as whales, are “beginning to take interest” in the cryptocurrency’s price movements as it rallies past the $19,000 mark for the first time since November 2022 as inflation appears to cool down.
According to on-chain analytics firm Santiment, Bitcoin transactions worth $1 million or more have started to rebound to levels last seen in November 2022 to average over 1,700 per day, moving up along with the cryptocurrency’s price.
It is worth noting that the actions of a class of individual holders should not be taken as a definitive indicator of market direction, as the price of any asset is ultimately determined by supply and demand dynamics.
As CryptoGlobe reported, around 13% of the flagship cryptocurrency’s circulating supply has returned to a state of profit, meaning it was acquired below the current price of BTC.
After Bitcoin’s recent rally, a significant percentage of the cryptocurrency’s supply returned to profit in a move that “helps to confirm that a large volume of $BTC was acquired between $16.5k and $18.2k.”
The accumulation could have a significant impact on the cryptocurrency’s future price performance, as the area could now turn into a strong support zone in which demand far outweighs supply.
Notably, various other analysts are bullish on BTC. Some predictions, including from former Goldman Sachs executive Raoul Pal and from an Ark Invest analyst, point to a $1 million price tag in the future.
Blockware Solutions, a company specializing in Bitcoin mining, has released a research report titled “Purchasing Power Under a Bitcoin Standard,” which states that if Bitcoin becomes the dominant store of value, its price could reach nearly $23 million.
The report also predicts that Bitcoin’s purchasing power could comprise approximately 61.4% of the total global market cap of financial assets and that its value will increase in perpetuity due to technological advancements increasing economic productivity over time.
The report assumes an average annual global GDP growth rate of 2%, which would lead to the purchasing power of Bitcoin doubling every 36 years.
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