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Bitcoin whales-addresses holding 1,000 or more BTC-have been accumulating more coins during last week’s market recovery. Bullish sentiment increased among the top Bitcoin investors during last week’s recovery when BTC bounced back from the swing low at $33,000 toward $43,5000 on February 11.
Let’s take a look at some of the past week’s major events.
- American credit rating agency Fitch Ratings has lowered El Salvador’s long-term user Default Rating to CCC from B-, stating the reason was due to “policy unpredictability” and the “adoption of Bitcoin as legal tender,” as a few of the major factors for the downgrade.
- Bitcoin network’s resilience against attacks has increased as the BTC hash rate surged 31.69% from 188.40 EH/s to 248.11 EH/s.
- Ethereum’s average transaction fees dropped roughly 75% to around $3, from highs seen in November 2021 at around $60 amid ETH price drop below $3,000. Ethereum transaction fees are now at its lowest level since July 28, 2021. Low fees usually maximize the chance of a rebound in prices.
- JPMorgan’s long-term target for Bitcoin price is at $150,000, an increase from $146,000 forecasted in January last year. However, the current fair value for the leading cryptocurrency is at around $38,000, according to JPMorgan strategists in the bank’s latest investor note published last week.
- Russia’s government and central bank are drafting a new law that will define cryptocurrencies as an “analog of currencies” rather than digital financial assets. Cryptos will function in the legal industry if they have complete identification through banking systems or licensed intermediaries.
Bitcoin whales sell on futures, on-chain investors are buying
Bitcoin price witnessed a mild drop over the weekend. However, on Saturday, February 12, the highest amount of active addresses was recorded in 2022 so far with 1.08 million transacting on the BTC network. The surge in participants transacting on the leading cryptocurrency network could signal increased utility, a predecessor to price rises.
Bullish sentiment experienced an uptick last week as the top crypto investors as the total supply in Bitcoin whale addresses increased to 8.10 million BTC last week compared to 7.95 million recorded on January 24.
It is also worth noting that smaller Bitcoin investors, addressed that hold less than 1 BTC also took part in the accumulation spree during the recent crypto market recovery.
Institutional interest in Bitcoin-focused investment products has also seen a rise as capital injections into crypto funds have reached $85 million.
The past three months of downward price action was initiated by selling pressure on futures markets, due to institutional investors holding onto their Bitcoin bags while shorting the futures.
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