The Number of Bitcoin Whales with More Than 1,000 BTC to Their Name Is Increasing Exponentially. Is the Trend Signalling Another Bull Run for Bitcoin?

Jack Choros

Content Marketing
September 15, 2020

Blockchain analytics firm Glassdnode is at it again with fantastic insight into what’s really happening in the world of Bitcoin investing. This time, the firm’s analytics is showing that the number of Bitcoin addresses holding at least 1,000 bitcoins is continuously following an upward trend starting from January of last year leading all the way up to this month. This likely means another Bitcoin Bull Run is about to begin. It could also mean much more than that for not only institutional investors, but also for you, the individual investor.


Why More Whales Equals More Room to Run

Consider for a moment that nearly 1,900 Bitcoin addresses hold at least 1,000 bitcoins. At $14,000 Canadian each, that means close to 1,900 addresses are holding at least $14 million in Bitcoin each. For the sake of argument, if we assume there are exactly 1,900 addresses holding exactly $14 million worth of BTC, that means those addresses are collectively holding $26.6 billion worth of Bitcoin. That’s roughly 10% of Bitcoin’s total market capitalization, which sits at $261 billion Canadian at the time of this writing.

This begs the question. In a crypto world full of decentralized currencies, why does this ever-increasing centralization of wealth matter? It points to the trend that many early adopters of crypto are hoping will gain steam as the years go by. That trend is that more and more people in control of institutional wealth are becoming interested in crypto. As much as the individual investor may not like the idea that the rich get richer, the reality is that this trend is good for all retail investors. One person buying a few dollars worth of Bitcoin isn’t going to move the needle much when it comes to creating a digital currency revolution. But a handful of people with access to billions of dollars who can move large amounts of capital into the space all in one swoop can make a much bigger impact.


Following the Digital Paper Trail

The fact that more and more Bitcoin addresses are starting to accumulate significant amounts of coins is definitely something to take note of, but it’s not the only way to track the flow of institutional money into the blockchain. Astute investors like yourself can feel free to take a look at the rising stock prices of various blockchain-centric and crypto mining companies as another indication that the revolution is accelerating.

The fact that Tyler and Cameron Winklevoss, identical twin billionaires who have a lot at stake in the crypto space published a blog post making the case for a $500,000 Bitcoin in the near future is another indication. So is the fact that famed stock market billionaire Warren Buffett is moving more and more of his capital away from the U.S. Dollar is another indication. Even Jim Cramer, famed host of CNBC’s Mad Money is convinced buying Bitcoin is worth it now.

But there is one more crypto specific indicator that makes the case for the fact that institutional investment in the space is increasing.


The Growing Market Capitalizations of Stablecoins

Stablecoins probably don’t excite you as a retail investor. They don’t fluctuate in price, which means they won’t make you richer, unless of course you’re willing to lend them out to decentralized finance platforms. Lending aside, there’s another fundamental reason the market caps of stablecoins are rising in value. It’s easier to trade stablecoins for crypto instantly when a big Bull Run begins.

So as more and more whales prepare to add liquidity to the crypto market in the long run, it makes sense that a stablecoins like the U.S. Dollar Tether token would become the third most valuable cryptocurrency in the world today, presently valued at over $19 billion Canadian.

If you want to be one of the investors waiting to make a splash alongside the biggest whales in the industry, the USDT token or Canada’s one and only stablecoin, QCAD, are available right here at Netcoins. You may not have the capital to buy 1,000 bitcoins, but as long as other investors do, you can benefit from the next Bull Run.

Written by: Jack Choros

Writer, content marketing at Netcoins.