On Wednesday evening, Blockchain intelligence company Arkham reported a Bitcoin transfer that raised eyebrows. The firm revealed that it had noticed the movement of 49,859 BTC, which had been sitting idle since 2013. So, is the whale finally booking profits? Let’s find out.
Arkham said the whale bought each Bitcoin at $35.93 in 2013. Today, data from CoinGecko shows that Bitcoin is changing hands for $42.292, meaning the whale has made substantial gains. For starters, whales are investors who hold large amounts of cryptocurrency. They usually move their crypto holdings to various addresses after some years.
Meanwhile, blockchain company CryptoQuant says it is unlikely that Wednesday’s Bitcoin transfer was done by an individual. The firm believes a big company initiated the transfer. On his X account, CryptoQuant’s blockchain analyst Bradley Park wrote that they had analyzed on-chain data and concluded that Coinbase, the biggest crypto exchange in the United States, moved the Bitcoins.
The Bank of International Settlement Report
The latest Bitcoin transfer echoes research findings published by the Bank for International Settlement last year. The financial institution discovered that investors who hold massive amounts of digital currencies for a long time are the biggest winners, while those who purchase and sell crypto within a short period are likely to miss out.
That is because Bitcoin and other cryptocurrencies grow in value significantly over the long term but are still subject to extreme short-term volatility. This is evidenced by last week’s event when the United States Securities and Exchange Commission let spot Bitcoin ETFs start trading in the American market.
Will Long-term Investors’ Patience Pay Over the Coming Years?
The development caused Bitcoin to touch $48,500. Short-term investors were quick to book profits following the surge, causing Bitcoin to drop below $42,000.
Long-term investors who continue to hold their BTC after the short-lived price increase are expected to reap massive profits in the coming years as more institutional investors continue to pour money into cryptocurrency markets through Bitcoin ETFs. Another factor that many anticipate will favor BTC and the broader crypto market is the upcoming Bitcoin halving in less than 100 days.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.