The adoption rate of cryptocurrency in Nigeria hits new highs and the price of Bitcoin has hit a more than 60% premium.
The number of Bitcoin whales has increased rapidly recently, according to data analysts, which could imply the beginning of a new bull run.
Data from BitInfoCharts, a resource showing the addresses holding the most Bitcoin, shows that the number of investors holding over 1,000 Bitcoin has risen to over 2,000. It seems as though this trend of whales investing in the industry starting in March this year. This could be attributed to the time when the global economy started to take a knock from the global pandemic and national lockdowns, as well as the Bitcoin price crashing to around $3,600 USD.
Is Bitcoin about to rally?
Whatever the cause, the result is that large investors are interested in buying – and perhaps holding on to – the token. As historic trends have shown us in the past, when whale investors reenter the scene, it’s typically indicative of a new rally. In the past six years, when whales exited or sold off, the price of Bitcoin has taken a dive. On the same side of the coin, when large investors start investing in Bitcoin, the price takes a rapid incline. In addition, despite the volatility of Bitcoin, there has been a recent healthy incline in price and trading volumes and the sentiment in the market is positive, which is another sign of a possible bull run on the cards.
As pointed out by Glassnode, the has also been an increase in addresses who have been active, but have not been spending Bitcoin:
— glassnode (@glassnode) August 25, 2020
The accumulation of Bitcoin, whether through large investors or casual active traders, implies that the mass adoption of cryptocurrency might not be far off.