Cryptocurrency News

Tesla’s $ 1.5B buy-in. The number of bitcoin wallets that hold 100–1K BTC increased after

Bitcoin Volume (B T c) Whales grew by about 14% after Tesla Announced Its entry into the cryptocurrency sector in early February 2021.

The latest data from the on-chain analytics platform Glasnod show that according to current exchange rates, wallets holding at least 100 BTC and a maximum of 1,000 BTC have fetched bitcoin worth approximately $ 19.5 billion. The deposit accelerated after Tesla revealed in its January securities filing that it had added $ 1.5 billion of BTC to its balance sheet.

The news went viral on February 8 when the cost of purchasing a bitcoin on Coinbase was as low as $ 38,057. Rates rose to $ 65,000 by mid-April, driven higher by bulls, which influenced more corporates to add bitcoin to their balance sheets than Tesla’s involvement in the cryptocurrency sector.

The anti-inflationary narrative of cryptocurrency increased the chances of adopting bitcoin among corporates and other institutions. Many speculators introduced bitcoin as an insurance against the expansionary monetary policies of the Federal Reserve, ending investor appetite for traditional safe-havens such as United States government bonds and the US dollar.

The USD index shows an uncertain inverse correlation with bitcoin after March 2020. Source: TradingView

Tesla in its first quarter filing to the US Securities and Exchange Commission, Also noted That it wanted to buy bitcoin using its $ 1.5 billion of unused cash reserves, hinting that the electric carmaker was looking to offset potential dollar devaluation risks.

The Glasnod BTC supply metric shows signs of stabilization after the latest crash. Source: GlassNode

The entire Tesla episode indicated a boom for investors seeking to maximize their returns from the bitcoin bull market. The Glasnod metric shows that bitcoin supply held by the 100–1K BTC wallet was stable before Tesla’s announcement, but increased dramatically thereafter.

But there is a catch

However, another Glasnod metric, which measures the bitcoin supply maintained by wallets with a 1K-10K BTC balance, shows a steady decline from about 455,000 BTC (~ $ 17.88 billion) to about 410,000 BTC (~ $ 16.11 billion).

The result showed that the big whale sold its bitcoin holding after Tesla’s announcement. As a result, they became part of the 100–1K BTC supply group.

Units with 1K-10K BTC balance fell after Tesla’s bitcoin investment. Source: GlassNode

At the same time, the selling of the 1K-10K BTC supply group did not make up for the bitcoin bull market. Cryptocurrency reached an all-time high of $ 65,000, indicating that small whales and retail traders absorbed the sales pressure of large investors.

At the time of writing, the transaction value of bitcoin is approximately $ 39,300, about 38% lower than its record peak in mid-April.