• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Whales Are Scooping Up Bitcoin As Crypto Seemingly Bottoms, Report Shows

Nick Chong by Nick Chong
2 years ago
in Bitcoin
Reading Time: 3min read
Whales Are Scooping Up Bitcoin As Crypto Seemingly Bottoms, Report Shows
Advertisement

While traders and chartists have quipped back and forth about the short-term prospects of crypto assets— if Bitcoin (BTC) will rally past $5,500 or fall through $4,800 — some have taken a step back, addressing this market at large. A recent report doing just this, published by cryptocurrency fund Adamant Capital, revealed that there is a multitude of reasons to be bullish on BTC.

Adamant’s established partners, all veterans of this industry’s historical harrowing sell-offs, also opined that more likely than not, this cycle has bottomed out at last. Bulls, you can rejoice at last!

Related Reading: Analyst: Bottomed Bitcoin Will Rally To $8,000, Not Collapse To $3,000

Crypto In The Midst Of Accumulation, Market Has Likely Hit A Floor

Hope. That’s the word that Adamant’s researchers and partners used to describe the Bitcoin market in its current state. Here’s why.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

It was explained that the Bitcoin Unrealized Profit/Loss (BUPL) indicator, which aims to estimate how much BTC holders’ are cumulatively profiting or losing, is reading at $13 billion in the positive. If the indicator is adjusted for the approximate number of lost coins, however, BUPL currently reads at $3 billion — 3% — of unrealized losses.

While this doesn’t sound all too important, as the measure is lesser-known, as Adamant explains, the recent BUPL movements confirms that Bitcoin has exited a “capitulation” phase, entering into a stage of “hope” (and fear). It is important to note that when BTC exited the “capitulation” phase during 2014 to 2016’s cycle, there was strong BUPL uptick, as we are experiencing now due to Bitcoin’s recent rally past $5,000.

bitcoin
Courtesy of Adamant

All this comes as some of Bitcoin’s whales, or bigwig investors as they are formally classified, are purportedly loading their bags for the long haul. Adamant’s partners claim that as a result of the “disposition effect,” which explains that investors have a propensity to hold on to assets that have collapsed, BTC is being accumulated rapidly after a large sell-off in late-2018, triggered by the collapse to $3,150.

Per the fund’s Bitcoin HODLer Net Position Change chart, over 100,000 BTC has entered HODLers’ wallets over the past two months (February and March), indicating that investors are likely stashing coins for the long haul. This corroborates a similar noticing made by Diar weeks ago, which revealed that cryptocurrency investors had begun to stock up on BTC.

The reason why accumulation is occurring: the bottom might just be in, and investors are trying to establish a fair cost basis before the crypto market inevitably goes haywire… again. Adamant’s team, which consists of long-time Bitcoiner Tuur Demeester, Michiel Lescrauwaet, advisor Adam Back, among others, explain that the lack of volatility indicates that cryptocurrencies are bottoming. The 60-day volatility chart for BTC is currently sitting at 5%, a level not seen since late-2016, and even fell as low as 2% in early-November 2018.

As NewsBTC hinted at during a similar report, in which short-term bear Murad Mahmudov claimed that low volatility has historically preceded jaw-dropping Bitcoin rallies, a lack of staggering price action suggests that “fast-money speculators” have been shaken out, meaning that only holders (and upside) are left.

Adamant’s recent comments come just a week after Binance’s research division proclaimed:

“Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the crypto market has already bottomed out.”

Bitcoin Fundamentals Look Stronger Than Ever

Well if cryptocurrencies have really bottomed, what is next?

Adamant was unable to provide an explicit prediction, but it did mention that Bitcoin’s fundamentals are looking stronger than ever, setting a precedent for a hefty recovery in the years to come. The fund classified fundamentals into three categories: scaling, financialization, and the rise of millennials and how that relates to BTC in particular.

Firstly, the merchant-friendly Lightning Network has seen monumental growth over recent months, with its channel capacity rising parabolically, as sidechains and improvement protocols have started to come to life. This, in the eyes of Adamant, confirms that BTC is far from dead in the water, as the network’s underlying development has continued amid a nasty collapse.

Secondly, Adamant claimed that if financialization, effectively the arrival of institutions, isn’t already here, it is well on its way with upcoming vehicles like Nasdaq’s Bitcoin futures, Bakkt’s physical-backed crypto contracts, and Fidelity Investments’ trade execution platform. This side of the equation may help Bitcoin “disrupt the $100 trillion investment vertical of Liquid Store of Value, and become a globally used digital gold and reserve asset.”

And lastly, as Messari’s Ryan Selkis indicated in a recent tweet, the rise of the millennial demographic and their wealth will likely entice a capital flight from traditional assets to digital ones, as this generation is dispositioned to take a liking to anything Internet-related.

Featured Image from Shutterstock
Tags: bitcoincryptomarketprice
TweetShare190
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Affect? Billionaire Fund Manager Sells 1.8M Tesla Shares for Clients

14 hours ago
Bitcoin on Back Foot as Focus Turns to Powell Speech; What to Expect?

Bitcoin on Back Foot as Focus Turns to Powell Speech; What to Expect?

16 hours ago
bitcoin gold ethereum mark cuban peter schiff

Mark Cuban Slams Peter Schiff: Gold is Dead, Bitcoin and Ethereum Are Today

1 day ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Price Outlook: Executive Sees BTC/USD At $60,000

2 days ago
Saylor Sees Bitcoin Regulation as Greenlight For More Institution Inflows

Saylor Sees Bitcoin Regulation as Greenlight For More Institution Inflows

3 days ago
bitcoin miner btc bullish

Bullish Bitcoin Miners Cease Selling For The First Time Since 2020

3 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Bittrex Global Exchange to List Ndau for Long-term Holders

March 4, 2021

Polkadex, DEX Built for Web3, Raises $3m From CMS Holdings, Outlier Ventures, OKEx Capital and More

March 4, 2021

Casino Betting Coin launches $FUN Uniswap pool

March 4, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Buy Silver

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.