The number of active Bitcoin wallets increased two weeks before the recent spike in cryptocurrency markets.
Citing market intelligence firm Flipside Crypto’s analysis, Bloomberg reported that a high number of digital wallets holding Bitcoin became active two weeks before the cryptocurrency market rally. Bitcoin skyrocketed on April 2, gaining 15 percent over the night and pushing over $4,500 for the first time this year.
According to Flipside Crypto, 40 to 50 percent of all Bitcoin had been held in digital wallets that were inactive from one to six months, while the average has reportedly been 10 percent since March 15. Eric Stone, co-founder and head of data science at Flipside Crypto, said that “there are more people warming up to the idea of buying Bitcoin.”
Stone also said that the price moves are usually the result of the interest in cryptocurrencies from a few large holders. The recent move purportedly reflects the case last fall when Bitcoin spiked 40 percent, although this time many smaller investors are “waking up.” Dave Balter, co-founder and Chief Executive Officer of Flipside Crypto stated:
“We see this move much more valid than a few whale moves in October. This probably signifies a change in perception or confidence in this asset class.”
Earlier today, Bloomberg reported that the recent crypto market jump could be linked to algorithmic trading, which is a method that uses automated software to detect trends and determine when trades should be made.
Bloomberg stated that Bitcoin’s unexpected 20 percent surge price might have been sparked by a $100 million trade made on three major exchanges. According to Reuters, a 20,000 BTC order was spread across the United States-based crypto exchanges Coinbase and Kraken, and Luxembourg’s Bitstamp.
Today, Bitcoin crossed the $5,000 price mark and is on the rise for the third day in a row. The coin is now trading at around $5,285, with over 10 percent gained on the day to press time.