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Since Bitcoin (BTC) has begun to falter over the past few weeks, with free assets falling below $ 6,000, investors have pulled out their magnifying glasses, doing their utmost to discern what catalyzed the sell-off . Although many fingers pointing to the controversial debacle of Bitcoin Cash, the renewed repression of the digital security tokens held by the US Securities and Exchange Commission and the lack of development in the cycle of launching the Bitcoin ETF, recently arose a new theorized catalyst.
For those not in the loop, this proposed catalyst is that whales and former "HODLers" have sought to liquidate their cryptocurrency holdings, exerting a huge sales pressure on assets such as Ethereum (ETH) and BTC. . However, an extensive research carried out by Diar, one of the main units of crypto-centric data analysis, notes that contrary to this popular belief, reports of a whale sale could not be further from the truth.
Etereum Whale Holdings Almost double in the bear market
According to the most recent episode of Diar of his weekly analytical report, the whales in the waters of Ethereum have continued to accumulate, probably enticed by the deal agreements seen in the cryptocurrency market.
We have published our latest issue for your reading:
• $ ETH Whales accumulate billions, but growth remains stagnant
• @coinbase Nears Full @circleinvest with $ ZEC Exchange
• @GrayscaleInvest The holdings in Bitcoin continue to rise as prices
And morehttps: //t.co/FfZgOPLGiu– Diar (@DiarNewsletter) 3 December 2018
According to data provided by TokenAnalyst conducted by Diar, as of January 2018, the amount of ETH that the first 500 portfolios of Ethereum held have increased by 80%. To put this growth figure into perspective, on January 1st, the whales kept 11 million etheres under lock and key, since November 30, the same group of users holds 20 million.
This staggering sum is equivalent to about 20% of all the Ethers currently in circulation and $ 2.2 billion in US dollar values, clearly indicating that whales are betting heavily on a market inversion.
Diar also noted that whales have presumably strengthened their Ethereum portfolios due to a revival in regulatory action supported by the SEC, along with a change in sentiment towards projects funded by the ICO. In a testament to the aforementioned point, the US government agency recently penalized AirFox and Paragon, while also fined the founder of EtherDelta for directing a platform of unlicensed titles. These two regulatory actions have instilled fear in the hearts of "supernatants", catalysing the death of a multitude of small businesses as traders rushed to sell their tokens for ETH.
Regardless of the exact stimulus behind this accumulation of accumulations, Diar closed his report noting that while the legal value of whale holdings decreased by ~ 90%, the growth of the fourth quarter ETH balance increased 270% compared to the third quarter, a bullish signal in the eyes of optimists.
Also the accumulation of Bitcoin, UTXO On The Rise
Not only have the whales accumulated Ether en masse, but also BTC, highlighting a tendency to accumulate in the 2018 bear market. As reported by NewsBTC earlier, the crypto analyst FlibFlib drew attention on the unused output set size of the Bitcoin Network transaction (UTXO) as a potential indicator in mid-November. The analyst explained that there is an accumulation in the increase of the UTXO, but as the same indicator decreases, investors are presumably selling their BTC in a "distribution" act.
With this in mind, and considering that UTXO has been in tears since July, partly because of the 40% decline in November, many believe that bulls continue to rise in long Bitcoin positions. However, the analyst noted that the gradual accumulation will not be enough to push BTC to the moon, so to speak. The analyst said that the unspent output indicator will have to see a "significant increase" coupled with a slight increase in the price of Bitcoin, to indicate that the bear market has finally run its course .
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