Data on large bitcoin (BTC) transactions shared by on-chain analytics firm Glassnode points to potential institutional interest in the flagship cryptocurrency, as well as ongoing accumulation by wealthy investors.
In a tweet, Glassnode detailed that the dominance of bitcoin transactions worth over $1 million rose from 30% last year to over 65% this year, reflecting a “growing share of institutional interest, and capital being transferring [sic] across the Bitcoin network.”
In its report, the firm detailed that looking into the trend of transaction dominance by size there is “a clear trend in play.” The firm added that the dominance of large transactions surged after the price of bitcoin dipped under $30,000 in late July, and that after BTC started recovering the dominance of transactions worth over $10 million followed suit.
Per Glassnode, the lifespan analysis of the transactions suggests older coins have “been largely dormant” over the last few weeks, which suggests large transactions on the network are more likely wealthy investors accumulating coins rather than selling them.
Similarly, there has been a “structural decline in small size transaction dominance,” with transactions of less than $1 million declining from 70% to “around 30%-40% dominance.” On-chain analyst Will Clemente noted that data suggesting whales aren’t taking profit even as BTC climbed past the $45,000 coupled with the high-net-worth accumulation, suggests the recent rise isn’t a dead cat bounce.
Instead, the analyst said, long-term holders “are not looking for exit liquidity to abandon ship.”
As CryptoGlobe reported, Bloomberg analyst Mike McGlone has revealed he believes both Bitcoin and Ethereum are “discounted bull markets” that solidified their support bases in June and July, and could resume their upward price trajectories in the near future, with $100,000 being in play for BTC.
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