According to market intelligence firm Flipside Crypto, active Bitcoin wallets increased in the two weeks before the Bitcoin’s rapid price increase.
You can apparently learn quite a bit about cryptocurrency market movements by following active Bitcoin wallets.
According to a new report released by market intelligence firm Flipside Crypto, about 40 to 50 percent of all Bitcoin (BTC) held in digital wallets were inactive in the past one to six months just three weeks ago.
In the two weeks leading up to the Bitcoin rally, this number plummeted to only 10 percent being inactive. According to Flipside Crypto, the rapid increase in activity again among Bitcoin holders shows that ‘there are more people warming up to the idea of buying BItcoin.’
The increase of active wallets likely indicates a change in confidence about Bitcoin as an asset class. Whereas a few whales were moving coins in October of 2018, now we have many small investors waking up to new market demand.
The report indicates that there may be some validity in monitoring active wallets. Generally, large movements of Bitcoin indicate significant price changes. In fact, the 20 percent price surge by Bitcoin a few days ago has been linked to a $100M trade made on three major exchanges. As reported by Reuters, 20,000 BTC was bought across the Coinbase, Kraken, and Bitstamp exchanges alone.
[bctt tweet=”According to Flipside Crypto, in the two weeks leading up to the Bitcoin price surge, the number of inactive wallets in the last 1 to 6 months plummeted from 40-50% to only 10%. ” username=”beincrypto”]
More active wallets normally indicate higher confidence. So, for next time, you may want to keep your eye on wallet activity among Bitcoin holders; it might help give you a hint that a big move is coming.
Does large activity between Bitcoin wallets indicate a large price move? Do you expect this price movement to continue? Let us know your thoughts below.