Despite whales selling out Bitcoin’s price is still surging
Data provided by on-chain analysis firm CryptoQuant shows that a large amount of Bitcoin deposits at exchanges starting rising on October 22. Amid the increased number of market sellers throughout the weekend, the surge in Bitcoin shows little sign of slowing. There likely two reasons for this surge. First, higher demand by new investors into the Bitcoin market appears to be overwhelming selling by whales as well as retail Bitcoin investors. Secondly, numerous high-profile events are creating a situation in which the demand for Bitcoin increases at a faster rate than supply, which appears to be a new trend in the market.
Why it matters: The rush by large Bitcoin holders to cash out at present levels shouldn't come as a surprise. Bitcoin prices are back into the range that marked a top in 2017, although this bullish momentum may carry Bitcoin prices well above their all time highs in USD terms. In fact, given the interest in the major cryptos by institutional investors, we may be seeing a new phase in crypto buying, where early adopters are 'bought out' by established investors who are looking to make Bitcoin the next major reserve asset. There is no way to know if or when Bitcoin will be held in the same way that gold is, but given the shift in market psychology, it may be happening right now.
