Bitcoin
This On-Chain Data Suggests Unannounced Companies are Accumulating Bitcoin
Cole Petersen | Oct 09, 2020 | 23:00
- The crypto community was ablaze with joy after news broke regarding Square’s decision to buy Bitcoin to hold as a reserve asset
- This decision came about just months after MicroStrategy made a similar choice, albeit on a larger scale
- If this trend gains steam as the dollar continues seeing unprecedented inflation, it could be a catalyst for massive BTC upside
- The significance of this should not be understated, but data seems to indicate that Square may only be the “tip of the iceberg”
- On-chain data seems to suggest that a myriad of other large, unannounced investors (and possibly companies) are currently in full Bitcoin accumulation mode
Bitcoin is currently expressing some notable signs of strength as its price pushes past the key resistance that exists within the lower-$11,000 region.
It is important to note that the selling pressure here is quite intense and could lead to a drawback if bulls aren’t able to maintain their momentum.
This isn’t an ordinary rally, however, as BTC’s price is being driven up on hopes that the cryptocurrency will continue being adopted as a reserve asset by corporations.
One well-respected on-chain analyst is noting that MicroStrategy and Square are simply the “tip of the iceberg” – pointing to on-chain data that indicates other large investors have been scooping up BTC at a rapid pace.
Bitcoin Price Rallies on Hopes of Corporate Adoption Trend
At the time of writing, Bitcoin is trading well over $11,000, marking a notable upswing from recent lows of $10,600 that were set just a few days ago.
BTC has been consolidating as of late, with the cryptocurrency struggling to gain momentum due to bearish news regarding the CFTC’s pursuit of the BitMEX co-founders.
Yesterday’s Square news, however, shifted the trend back into bulls’ favor.
On-Chain Data Shows Square and MicroStrategy are Just the Beginning of a Greater Trend
Prominent on-chain analyst Willy Woo explained in a recent tweet that Square and MicroStrategy likely aren’t the only companies currently accumulating Bitcoin.
He points to the massive reduction of spot BTC available on exchanges, noting that the collective purchase by the two aforementioned companies only accounted for a small portion of the total supply reduction seen as of late.
“Square’s buy of 4,709 BTC and Microstrategy’s 38,250 BTC is the tip of the iceberg. The last 8 months has seen a reduction of 250,000 BTC in the speculative stockpile sitting on exchanges signaling many other *unannounced* investors have been scooping coins off the market.”
If another public company makes a similar announcement, it will officially be considered a trend and could become a catalyst for serious growth.
Featured image from Unsplash. Pricing data from TradingView.
