{"id":437733,"date":"2020-09-08T17:00:26","date_gmt":"2020-09-08T17:00:26","guid":{"rendered":"https:\/\/wncen.com\/?p=437733"},"modified":"2024-06-11T14:16:06","modified_gmt":"2024-06-11T14:16:06","slug":"data-shows-whales-are-loading-up-on-bitcoin-but-why","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/data-shows-whales-are-loading-up-on-bitcoin-but-why\/","title":{"rendered":"Data Shows Whales Are Loading Up On Bitcoin, But Why?"},"content":{"rendered":"

Bitcoin price is falling<\/a> and the market is already fearful of a repeat of Black Thursday. But if massive “high net worth” whales have anything to say about it, another such plummet is extremely improbable. Why? Because since that day, these same whales have amassed a substantial amount of the BTC supply.<\/p>\n

But what is the reason behind this sudden trend? Was it due to Bitcoin’s now-past halving, or is there something else going on behind the scenes, where high wealth individuals are buying it as an insurance policy against the unknown?<\/p>\n

Can The Wildly Volatile Cryptocurrency Really Protect Wealth In Some Way?<\/h2>\n

Savvy investors and the crypto-blind have long positioned Bitcoin as a hedge against the dollar<\/a>, stocks, and nearly every situation imaginable. “Bitcoin solves this” has become a meme as a result.<\/p>\n

Truly becoming a hedge is the one thing Bitcoin can’t seem to solve, chiefly due to the asset’s wild price volatility. It is difficult to claim any asset is a hedge when it crashes by $2,000 in a single 48-hour period<\/a>.<\/p>\n

Related Reading | Don\u2019t Panic: Crypto Market Collapse Was \u201cProfit-Taking\u201d and \u201cRebalancing\u201d<\/a><\/strong><\/em><\/p>\n

Its why stock market investors have laughed it off as an anti-correlated asset to hedge a portfolio with. The sudden close correlation between the cryptocurrency and major stock indices<\/a> like the S&P 500 has only further harmed that edge the asset once had going for it.<\/p>\n

Instead, the narrative has since again shifted toward inflation and Bitcoin’s use as a hedge against a declining dollar. The digital currency has also seen a close correlation with gold<\/a>, which itself is used as a safe haven for investors.<\/p>\n

Gold isn’t just a safe haven due to its use as a hedge against the dollar, its private ownership over a physical good keeps it out of the government’s reach. Bitcoin does this a lot better, however.<\/p>\n

And it is for all of the reasons and more that high net worth whales are more often considering Bitcoin as a hedge against just about everything.<\/p>\n

\n

Many look at the BTC price and doubt it's a hedge. High net worth individuals and funds certainly consider it to be true and betting on that with real money.<\/p>\n

Since this latest round of USD money supply expansion, whales entities have increased their holdings of BTC markedly. pic.twitter.com\/O1H6L41wXp<\/a><\/p>\n

— Willy Woo (@woonomic) September 8, 2020<\/a><\/p><\/blockquote>\n