In the two weeks leading up to Bitcoin’s sudden price increase on April 2, there was some underlying activity involving previously dormant Bitcoin wallets.
According to a Bloomberg report, Flipside Crypto – a market intelligence firm had picked out that, for the past two weeks, the number of active Bitcoin wallets grew by a significant margin.
Before now, around 40-50 percent of all Bitcoins were lying dormant in wallets that have been inactive for about six months. However, since March 15, the firm said it recorded only an average of 10 percent for idle wallets, meaning that roughly 30-40% of Bitcoin wallets became active before the latest surge.
Eric Stone the head of data Science and co-founder at Boston-based Flipside said about the sudden awakening of crypto wallets,
“If you’re are a crypto optimist, that’s good news.” he adds, “There are more people warming up to the idea of buying Bitcoin.”
More often than not, the surge is in Bitcoin prices is as a result of the awakening of Bitcoin wallets belong to whales (large holding investors). Eric noted that this awakening was responsible for the bullish price action of the cryptocurrency in October, noting that this time around, it got even better because many smaller wallets also woke up.
Flipside’s CEO Balter Dave also added,
“We see this move much more valid than a few whale moves in October. This probably signifies a change in perception or confidence in this asset class.”
Coinfomania has reported the recent upturn in the market which a mysterious 20,000BTC order caused evidence shows. Bitcoin has since then tested the waters above $5200 for the first time in 2019 before dropping to around $4987 at press time.
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