British Financial Information Investing.com-As Bitcoin rebounded to $50,000 this week, data show that Bitcoin whales are returning to the market.
Whales, who hold about $50 million or more of bitcoin, have been buying more bitcoin since the end of June, according to the latest data from blockchain company Chainalysis. As Bitcoin rebounds to more than $50,000 this week, the bullish sentiment is likely to continue until the end of August.
Philip Gradwell, chief economist of Chainalysis, told the media that "the recent purchases of Bitcoin by large investors are related to the medium-term changes in the price of Bitcoin."
It is reported that the bitcoin "whale" (that is, investors who hold large amounts of bitcoin) is closely related to the price trend of bitcoin. Philip Gradwell pointed out that until the end of February this year, these large positions of investors were the "driving force" of the bitcoin market. As these investors buy large amounts of digital assets, asset prices usually rise over the next 28 days and fall instead.
From late June to Aug. 22, these large investors bought nearly $10 billion of bitcoin at Tuesday's price this week. According to the company's data, the number of bitcoin held by these bitcoin "whales" has returned to the level of February.
This week, Bitcoin returned to the $50, 000 mark, hitting its highest level in three months. As of this writing, however, the price of Bitcoin has fallen slightly to about $46000.