The Bitcoin price reached its preliminary all-time high of ~$73,800 on March 14. This obviously creates a lot of optimism within the crypto world, but danger lurks in the background. It seems that more and more whales are waking up from a long hibernation. Should we worry about new corrections or can we brace for new all-time highs?
Very old whale wakes up from hibernation
One of the whales who woke up from a long hibernation bought his 500 Bitcoin almost 12 years ago for a total of $4,000. Right now, those same Bitcoins are worth about $35 million. Fortunately for us, the Bitcoin in question was not sent to an exchange platform, but to a series of new addresses.
What does this transaction mean for the Bitcoin price? In principle it doesn’t have to mean anything. It could be a simple rearrangement of this whale’s wallets, but it could also be that the Bitcoin was sold “over-the-counter”.
This means that the whale in question did not sell his Bitcoin via an exchange platform, but via a private deal to wealthy investors. It could well be that the providers of Spot Bitcoin ETFs approach old Bitcoin investors for these types of deals, so that they do not influence the price on trading platforms too much with their purchases.
Liquidity crisis for Bitcoin?
Several analysts believe that the recent increase in whale transactions points to a so-called liquidity crisis for Bitcoin. What does that mean? These analysts suspect that there is simply too little Bitcoin available, that demand far exceeds supply and that it is increasingly difficult for people to buy large amounts of Bitcoin.
Don’t forget that the next halving is scheduled for mid-April. In the past, the halving has been extremely bullish for Bitcoin. Almost always, a new bull market started after a halving. Although we can now hardly deny that we are already in a bull market.
After all, Bitcoin has already managed to set a new all-time high, which makes this cycle unique. Never before has Bitcoin managed to reach a new all-time high before the halving.
