Daily market update: Whales hoarding Bitcoin?

by Team Luno
· 3 minute read

Put the champagne on ice and start polishing the croquet set, it’s Wednesday! Sort-of almost nearly the weekend! But first, here’s a bonus edition of the daily update for you – we had some interesting metrics lying around and thought it would be mean to keep them to ourselves. Enjoy!

If you’re new to the world of crypto trading, take a look through our beginner’s guide to crypto trading series, starring in-depth explorations of common strategies, market analysis techniques, and more.

The content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

All information is correct as of 09:00am BST

Bitcoin price

We closed yesterday, 25 August 2020, at a price of $11,366.14 – with a daily high of $11,778.30 and a low of $11,189.85.

The closing price is the lowest since 4 August, 2020. On the same date last year, it was $10,138.52

We’re 42.42% below bitcoin‘s all-time high of $20,089 (17 December 2017).

As of today, buying bitcoin has been profitable for…

95.5% of all days since 2013-04-28.

Bitcoin volume

The volume traded yesterday was $26,301,509,932 – up from $20,681,511,755 the day before. That’s the highest it’s been since 17 August 2020.

Market capitalisation

Bitcoin’s market capitalisation as of yesterday was $209,942,744,481, down from $217,477,962,650 the day before. To put that into context, Jeff Bezos’s net worth is $188,500,000,000, which means he could only buy 89.79% of all Bitcoin. You can’t have everything, Jeff!

Total crypto market cap at highest level since April 2018

The total cryptocurrency market capitalisation is currently at its highest levels since April 2018, sitting at approximately $382 billion. It’s still 55% lower than the January highs of 2018, whereas Bitcoin is down 40% from its all-time high.

Whales are accumulating more BTC

The number of wallets holding more than 1000 BTC ($11.8m or more) just reached a new all-time high, according to data from Santiment. Of the wallets holding more than 1,000 BTC, 2,096 are holding between 1,000 to 10,000 BTC, while 104 wallets hold above 10,000 BTC.

The number of wallets holding more than 1000 BTC fell during both the 2013 and 2017 bull runs as whales sought to realise profits. The recent uptick could be taken to mean that large BTC holders currently have no interest in realising profits. Rather, it seems like the whales are in an accumulation period, as more bitcoins are absorbed by large holders.

7-day volatility stays low

We expected more volatility last week as bitcoin climbed to a new yearly high, but the market has been fairly flat without another push towards new highs. The 7-day volatility has been trending downwards this month, as the market is waiting for BTC to choose direction.

Fear and Greed Index

Despite yesterday’s price drop, we’re back up in the Extreme Greed zone at 76. Extreme fear can be a sign that investors are too worried, which could be a buying opportunity. When Investors are getting too greedy, that means the market may be due for a correction.

New investors entering the market?

Search interest for “buy crypto” is growing rapidly, with Google searches for the phrase at the highest level since January 2018, when the crypto market peaked. This suggests an influx of new investors who are curious about the cryptocurrency space, but we’re still far from the retail euphoria that was seen back in Jan 18.

Interestingly, bitcoin itself is not getting the same kind of traction. The search interest for “buy bitcoin” laying flat since the top in May when the halving took place.

Relative Strength Index (RSI)

The daily RSI is currently 49.09. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience correction in price. – an RSI reading of 30 or below indicates an oversold or undervalued condition.

Resistance and support

What they said yesterday…

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