A fresh report is shedding some on how Bitcoin holdings have shifted. Specifically, it suggests ”big money” took advantage of the cryptocurrency winter to dramatically increase the size of their Bitcoin wallets.
Big money took advantage of crypto winter price dips
The Bitcoin price recently reached a new 2019 high and is now trading at levels not seen since August of 2018. However, a new report from Diar highlights how the distribution of Bitcoin holdings has changed significantly since last August.
The report details how the number of wallets holding between 1,000 and 10,000 Bitcoin has increased sharply. Subsequently, the report could reveal that these Bitcoin addresses were mainly of ”Firm Size”. As such, this accumulation was chiefly driven by ”big money” firms.
This suggests big money took advantage of the crypto winter – and the associated price dip – to refill their Bitcoin wallets. Consequently, the article concludes that ”Firm Size” Bitcoin addresses now own more than 26% of the circulating Bitcoin supply.
For reference, this corresponds to about $36 billion worth of Bitcoin. Additionally, ”Firm Size” Bitcoin addresses held less than 20% of the circulating Bitcoin supply in August of 2018. As a result, big money crypto firms took advantage of the cryptocurrency winter to accumulate a massive 450,000 Bitcoin.
Buy the dip?
The would have come an opportune time as well, as there was substantial market uncertainty during the height of the crypto winter. Whether big money took advantage of the crypto winter’s low prices consciously or not, this could pay off spectacularly.
The recent Bitcoin rally has substantially boosted the value of these holdings, and the next crypto bull run could see it go even higher. Furthermore, analysts have been predicting Bitcoin to have a 2019 crypto price rally during the coming half of the year.
What’s more, the report notes that some Bitcoin holdings were further affected by Coinbase. Specifically, Coinbase transferred around 5% of Bitcoin into cold storage last December. However, Diar’s analysis excluded these Bitcoins.
With that said, it is also worth mentioning that it was not only big money that took advantage of the crypto winter. Rather, Bitcoin wallets of ”Retail Size” also increased in size, with 126,000 Bitcoins added.
Nonetheless, the report highlights that these Bitcoin holders are unlikely contenders for driving recent price spikes. As the cryptocurrency winter finally looks to be over, these added Bitcoin holdings could quickly prove extremely valuable.
Image Source: Thomas Trutschel, Photothek via Getty Images
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.