In today's digital currency market, Bitcoin has always been the focus of attention, and its price has soared, sparking heated discussions among investors around the world. However, as the price of Bitcoin continues to rise, some people have begun to question whether it is worth hoarding this virtual currency. Especially those whales who own a large number of Bitcoins, are they still hoarding this digital wealth? This article will delve into the truth behind the soaring Bitcoin price and the behavioral motivations of whales who own 1,000 Bitcoins.

The price of Bitcoin has been rising all the way, which is dazzling. For ordinary investors, it is already an unattainable dream to own a complete Bitcoin. However, for those whales who own 1,000 Bitcoins, they do not seem to be satisfied with the wealth in their hands. On the contrary, they continue to hoard Bitcoin. What kind of secret is hidden behind this?

From the data, the supply of Bitcoin is limited, which is also one of the important reasons for its rising value. As the difficulty of Bitcoin mining increases, more and more people are aware of the scarcity of Bitcoin. Therefore, some whales choose to continue to hoard Bitcoin in anticipation of further price surges in the future. They believe that Bitcoin will become the digital gold of the future, and holding more Bitcoin means having more future wealth.

However, hoarding Bitcoin is not without risk. The Bitcoin market is extremely volatile, and prices may plummet at any time, causing huge losses to hoarders. Just like gamblers in a casino, whales who hoard Bitcoin are also gambling, and the stakes are the wealth in their hands. Although the Bitcoin market has great potential, the risks cannot be ignored.

In addition to market risks, Bitcoin, as a virtual currency, also faces regulatory and legal challenges. As governments around the world increasingly strengthen their supervision of digital currencies, hoarding Bitcoin may bring legal risks. Some countries have begun to restrict Bitcoin transactions and even prohibit Bitcoin from circulating within their borders. This has also sounded the alarm for hoarders, causing them to begin to re-evaluate the digital wealth in their hands.

In this era of digital currency craze, the skyrocketing and plummeting of Bitcoin prices is overwhelming. The whales with 1,000 Bitcoins may seem to have an advantage in the rules of the game, but the challenges and risks they face are equally huge. Hoarding Bitcoin may be an investment strategy, but it is by no means the only option. In the digital currency market, acting cautiously and investing rationally is the long-term way.

In general, the soaring price of Bitcoin is dazzling, and the behavior of whales who own 1,000 Bitcoins and continue to hoard the currency is even more eye-catching. However, investment is risky, and hoarding Bitcoin is not the only option. In the digital currency market, rational thinking and prudent behavior are the long-term and stable investment methods. I hope every investor can overcome difficulties in the world of digital currency and seize the opportunity of wealth.

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According to NewsBTC on February 15, Kraken said that "whales" holding 100 to 1,000 bitcoins are hoarding more bitcoins.

(Image source: pixabay)

In a report released on Friday, Kraken pointed out that the growth of the number of whale (large bitcoin holders) addresses has stagnated since January 3, 2020. In January, people holding more than 100 bitcoins remained "wait-and-see" about continuing to hoard coins, while players with 10 to 100 bitcoins continued to hoard coins.

The number of addresses with 1,000 to 10,000 bitcoins fluctuates with the price of bitcoin, image source: Kraken

The above situation changed in February 2020. Kraken said that before the sharp rise in bitcoin prices in January, the number of players holding 100 to 1,000 bitcoins surged. The exchange called it a repeat of a historical pattern, where the sentiment of players with 10 to 100 bitcoins in the hoarding phase will be carried over to players with 100 to 1,000 bitcoins in the later stages.

Kraken wrote:

This could mean that the hoarding sentiment mentioned above will immediately resonate with players with 1,000 to 10,000 bitcoins, allowing them to enter a new hoarding phase.

Small fish (players with less bitcoin) are also hoarding bitcoin

Players' continued hoarding shows that people are using bitcoin as a store of value asset. The rise in the price of bitcoin from $3,120 in December 2018 to just over $10,000 in February 2020 further illustrates people's increased exposure to this alternative asset.

Just last month, blockchain intelligence company Glassnodes pointed out that retail players also have similar "hoarding" sentiment. It said that since the formation of the bottom range of bitcoin prices in 2018, the number of addresses with balances between 0.1 and 1 bitcoin has risen by 10%.

Today, large HODLers are experiencing a similar shift in sentiment, with hopes that Bitcoin's price rally will continue into 2020.

Kraken predicts: We expect the aforementioned hoarding to end in the coming weeks or months, with volatility returning to Bitcoin prices. This 'hoarding first, then volatility' dynamic will further absorb liquidity from the market, creating a supply-demand imbalance in the future.

What drives Bitcoin whales to hoard?

Kraken noted that demand for Bitcoin as a safe-haven asset continues to rise against the backdrop of a series of macroeconomic events.

Shortly after the United States killed a senior Iranian military official on January 3, Bitcoin's correlation with some major safe-haven and high-risk instruments increased. When the dust settled, China's new coronavirus outbreak sparked concerns. At the same time, global stock markets fell to record lows, and demand for hedge assets also increased significantly.

Kraken found that Bitcoin's price surged as the Chinese central bank tried to curb the economic crisis by injecting $170 billion into the financial system. This could affect large investors' continued exposure to cryptocurrencies and further affect Bitcoin's price.