Bitcoin, the largest cryptocurrency, recently made a new two-year record after closing the day with an exchange inflow of 1.68m BTC. The coin replicated and slightly surpassed the record it set in June 2019 of about 1.68m BTC. Investors and analysts are already expecting volatility in the coin’s value.
BTC Making History
On Wednesday, Bitcoin made a new record as its exchange inflows increased to above 1.68 million BTC in a single day. These values mean that investors injected at least 8% of the total BTC in circulation into exchanges for trading. The 1.68 million is the highest daily inflow of all time, surpassing the original June 19, 2019, record of 1.68 million.
Santiment, a data analytics for exchanges, posted the results on Twitter saying;
#Bitcoin just made history with its largest day of exchange inflow since June 19, 2019. These days are now tied for the largest inflow day of all-time, both with 1.68M $BTC flowing to exchanges on these respective days. Expect increased volatility. https://t.co/yzOHzqlrKW pic.twitter.com/dT3JbyDD2m
— Santiment (@santimentfeed) August 27, 2021
The day, therefore, stands as the most active day in the history of Bitcoin. The increase in BTC inflow can easily cause an increased selling pressure and increased BTC volatility. This increased value happened in a day when Bitcoin was in a slightly bearish trend, maybe signifying the loss of confidence from small-scale traders. However, whales might have an increased confidence level in BTC.
More Purchases from Whales Last Week
As the exchange inflows increased to new heights, so did the whale activities concerning Bitcoin. Bitcoin millionaires and whales continued to add more coins to their wallets. Maybe, their actions are in anticipation of the upcoming volatilities that may drive BTC to $100k.
Whales, wallets holding between 100 and 10k BTC bought around 20k more BTC in the period. Early this week, one wallet, held around 6k BTC on Binance exchange wallet, outflows the amount to an external wallet, Xapo. The 6k BTC has a current value of over 290 million.
Today, whales control a big share(almost 50%) of the BTC coins in circulation. Generally, the millionaires are the ones powering the BTC ecosystem. Even in a bearish time, their continuous buys show that they have much confidence in the coin. They are most likely preparing to benefit from the possible incoming volatilities in BTC.
BTC Price Actions Benefits
As the trading inflows increased on Wednesday, BTC was in a continuous bearish that began early last week. The coin continued to trade on a bearish note on Thursday but seemed to be slightly reversing course early Friday. The currency is currently trading at $47500.
Experts predict that BTC could be heading to $100k by the end of 2021. If that happens, then hodlers of the coin will have gained immense profits. Generally, whales are expecting the prices to increase thus far, and that’s why they are purchasing more. All in all, BTC broke a record in volumes.