Crypto Whales Prove Bitcoin is a Generational Investment

Bitcoin’s largest hoarders have been scooping up BTC at a relentless pace over the past nine months, offering definitive proof that the crypto fat cats are betting on a prolonged rally.

If you believe the adage, “follow the money,” then bitcoin’s price could go a lot higher over the next two years.

Bitcoin Whales Accumulate

Over the past nine months, bitcoin’s largest holders accumulated a whopping 450,000 BTC, according to the latest edition of Diar’s weekly newsletter. As a result, over 26% of bitcoin’s circulating supply now sits in addresses that have a balance of between 1,000-10,000 BTC.

The last time bitcoin was $8,000, large addresses held under 20% of bitcoin’s circulating supply.

“Since December 2018, in a short six month period, Bitcoin accumulation has seen over 1.2Mn added to this bracket, by and far the largest growth across all address groupings.” – Diar

Diar noted that the 1-10k bitcoin address bracket witnessed a huge surge in December that was due to Coinbase shifting roughly 5% of its supply into new cold storage facilities. At the time, the San Francisco-based exchange moved 856,000 BTC across 107 addresses.

Bitcoin’s largest holders have been scooping up more of the cryptocurrency because they believe prices have bottomed. Bitcoin has gained a whopping 170% from the December low and its market cap has swelled from $57 billion to $155 billion.

Whales, retail traders and new investors appear to be hoarding bitcoin for its store-of-value characteristics. As The Rhythm Trader recently pointed out, 60% of all bitcoin have not moved in one year. That’s roughly 10.5 million BTC that have been held as a store of value.

60% of all bitcoins have not moved in one year.

That's 10.5 million bitcoin being held as a store of value for the last 12 months.

You can buy 11,000 satoshis for a single US dollar, that's the deal of the century.

— Rhythm (@Rhythmtrader) May 27, 2019

Back in January, Hacked hypothesized that 2019 will be bitcoin’s year of accumulation. A look at unspent transaction outputs on the Bitcoin network and various technical indicators confirm this to be the case. Read more: Five Reasons Why Bitcoin is Surging.

Market Update

The bitcoin price was in consolidation mode on Wednesday, hovering between $8,700 and $8,800 on most major exchanges. At the time of writing, the average bitcoin price was $8,748.35, according to CoinMarketCap. That represents a daily gain of 0.7%.

Most of the gains on Wednesday were concentrated in altcoins and tokens. As a result, bitcoin’s dominance index has fallen to 56%, the lowest in three weeks. Bitcoin’s dominance rate peaked above 60% more than two weeks ago.

Although predicting bitcoin’s future trajectory is notoriously difficult, Max Keiser of the Keiser report believes six-figure levels are extremely likely over the next several years. This makes bitcoin a generational investment that will pay dividends for the next five-15 years.

In a recent interview with CNBC Crypto Trader, Keiser said:

“The timing is immaterial. It is still going to outperform every other asset you can possibly imagine owning over the next five, 10, 15 years. Forget about timing. Timing is for people who think that, ‘I’m going to wait and buy it at a better price.’ And that is a bad way to approach crypto. Stack Satoshis!”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Chart via TradingView. 

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