Bitcoin rose to an all-time high of $85,000 today, and analysis from cryptocurrency firm Santiment suggests that sustained buying by large investors, or “whales,” has been driving the price increase.
According to Santiment, wallets holding at least 10 BTC, which are typically associated with influential investors, have accumulated more than 234,150 BTC worth approximately $19.76 billion since last year.
Santiment noted that large-scale accumulation by whales and smaller-scale investors (sharks), along with the cautious sentiment of retail investors, created an ideal environment for Bitcoin’s historic price increases. “The crowd’s consistent FUD (fear, uncertainty, and doubt), capitulation, and inconsistent faith in crypto (allowing whales to buy cheaply) also contributed to this historic rally,” Santiment wrote in its report.
The analysis also observed that while current enthusiasm levels are high, they have yet to reach the peaks seen in March when Bitcoin last reached record highs. Santiment suggested that Bitcoin prices could continue to rise as long as whale investors remain active and retail investors sell during minor dips.
“Expect prices to rise as long as whales continue to buy more and the retail crowd continues to sell their cheap coins,” the firm said.
*This is not investment advice.