15.6 C
Manchester
October 2, 2022
Image default
Bitcoin

Willy Woo On-chain consideration “Trends of wealthy people and supply and demand in the background of soaring Bitcoin”

Factors of the rising market talked by well-known analysts

Bitcoin, which plunged this Monday and was widely reported in the major media, recovered again by approaching $ 40,000 at one point over Thursday.

It has been pointed out that it is the wealthy and ultra-rich people called HNWI (High NetWorth Individual) that support the strong prices. Willy Woo, who conducts on-chain analysis, pointed out on Twitter that the number of “whales”, which indicate large investors, has increased sharply and the amount of Bitcoin in circulation has been exhausted.

The wealthy individuals have realized that they need an allocation (to Bitcoin). In my opinion, this (the influx of wealthy people) is why Bitcoin soared above $ 23,000.

According to data from blockchain analysis company Glassnode, the number of addresses (large investors ≒ whales) holding more than 1000 BTC (about 3.5 billion yen) of Bitcoin (BTC) has reached a record high.

Relation:Bitcoin’s “whale” is the highest ever ── buy more when prices fall

Woo also described the increase in whales as the “whale spawning season” and described it as an unprecedented cycle of entry into the ultra-rich.

Bitcoin “lost” due to lost private key, etc.

Woo also mentions the lost Bitcoin, which is actually more than the commonly distributed supply, as up to 3.7 million BTC are lost in the analysis of crypto data company Chainalysis. Pointed out a small possibility.

It is thought that there are a certain number of Bitcoins that cannot be accessed (withdrawal, etc.) because the private key of the wallet that accesses Bitcoin is lost or the money is sent to the wrong address.

Recently, former CTO of Ripple Labs, Stephen Thomas, has revealed that he is losing access to 7002 BTC (about 28 billion yen).

NY TimesReportedly forgot the password for the device that holds the private key.

He said that Bitcoin, which is a considerable amount of present value, was only a small reward for making a video explaining crypto assets at the time Thomas received it.

The HODL rate of BTC holders is also the highest ever

In addition to Bitcoin, which became “inaccessible” due to the loss of the private key, a virtual currency data companyglassnodeAccording to the analysis, up to 78% of the distribution volume already on the market is low liquidity and is in a state of being “HODL” by Bitcoin holders.

  • (Highly liquid) Highly liquid distribution volume: 30,000 BTC
  • (Liquid) Liquid distribution volume: 1.2 million BTC
  • (Illiquid) Almost no liquidity Distribution volume: 14.5 million BTC

In light of these results, Woo points out that the overlap of monetary policy against the new coronavirus has further spurred demand for Bitcoin’s originally low supply.

Recently, there has been a lot of talk about the case where Grayscale, a major US cryptocurrency investment company, is purchasing BTC at a pace higher than the amount of new Bitcoin issued.

Although the exact number of Bitcoins that are inaccessible or left unaccessed (≈HODL) is unknown, the actual supply of Bitcoin based on on-chain data is displayed on the CMC. It suggests that it is lower than the numerical value.

It is likely to be data that we would like to keep in mind as an element that further increases the rarity of Bitcoin, which is originally limited in supply.

N https://blocksats.com/wp-content/uploads/2021/01/Willy-Woo-On-chain-consideration-Trends-of-wealthy-people-and-supply.jpg->

.

Author: t.tenporin

Images used under Shutterstock license
“Cryptocurrency” means “cryptocurrency”

Related posts

Analysis: Bitcoin could break $ 60,000 soon

Anupreet Kaur

Reserve Bank of India wants to issue CBDC –

Aparnna Hajirnis

Bitcoin is one of the main topics of the upcoming Goldman Sachs teleconference – Blocksats

Aparnna Hajirnis

Leave a Comment