What happened?
Bitcoin’s price recently surged above $118,000 despite facing significant selling pressure from large holders known as “whales.” This recovery has spurred discussions about how these whales and dormant wallets affect Bitcoin’s price movements. In contrast to common beliefs about whale dominance, new insights reveal that over 67% of Bitcoin is held by individuals instead of institutions.
Who does this affect?
This development primarily affects Bitcoin investors, traders, and the broader cryptocurrency community. Individual holders, who make up a significant portion of Bitcoin ownership, stand to gain both financially and in influence over market dynamics. Institutional investors and entities holding smaller percentages may need to adjust their strategies based on these ownership insights.
Why does this matter?
The fact that Bitcoin is largely owned by individuals highlights the decentralized nature of the cryptocurrency, aligning with Bitcoin’s founding principles. Market-wise, Bitcoin’s resilience above key price levels indicates potential bullish momentum, with predictions suggesting a rise to $140,000 or more. However, investors should remain cautious due to inherent market volatility, as indicated by cautionary signals from the Index Bitcoin Cycle Indicators (IBCI).