Photo: Coin Telegraph
(Coin Telegraph) - The number of whale addresses holding Bitcoin have hit a new all-time high, the latest data shows. This can be considered bullish, particularly as the price of BTC is showing staying power above $50,000.
The increase in the number of whales indicate that high-net-worth investors are actively accumulating Bitcoin as the bull market continues.
Why is the rising number of whales important?
During bull cycles, the price of Bitcoin could be at risk of a severe sell-off if whales begin to sell or take profit on large positions.
When this happens, it creates a massive downturn because the overleveraged futures market begins to fall, seeing cascading liquidations.
But when whales continue to accumulate, as the on-chain data shows, the foundation for an extended rally strengthens.
Ideal short-term scenario is for the futures market to deleverage
Currently, Bitcoin has the components to see a continuation of the ongoing rally. Whales are buying, the trading volume is rising in general, and there is large institutional interest in Bitcoin.
However, there is one major risk in the market and that is the overleveraged futures market. As of Feb 18, the futures funding rate for both Bitcoin and Ether surpassed 0.15%.
Read more from the original article here.
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