Bitcoin Rally in October Driven Largely by Whales, Analyst Claims

A data analyst has said that the ongoing Bitcoin price surge has been driven by whales and that there haven’t been any big-short liquidations yet.

Bitcoin Rally in October Driven Largely by Whales, Analyst Claims

Bitcoin has been seeing notable gains in the past couple days

Highlights
  • Bitcoin rally may be driven by whale buying, not short squeeze
  • Short-squeeze yet to make a marked impact on Bitcoin rally
  • Bitcoin whales are buying big for the first time since May crash

Bitcoin is approaching its all-time high and demand for the cryptocurrency has jumped dramatically for bullish contracts across crypto exchanges. The world's most popular cryptocurrency, at the time of writing, is trading at $61,089 (roughly Rs. 45,96,677) on Coinbase, taking October's rally to over 40 percent. An analyst has now opined that the current Bitcoin rally has been driven by whales and that short liquidations are yet to make a major splash.

Ki Young Ju, the CEO of CryptoQuant — a well-known South-Korea based data analytics and research company — tweeted stating that Bitcoin prices lately have been driven by whales buying large amounts of the cryptocurrency through derivatives. This is a marked shift from what the trend has been over the past few months. Since BTC's crash back in May, Bitcoin bulls have been hesitant to buy big and shift focus temporarily to other assets like non-fungible tokens.

In the crypto-world, a 'short squeeze' is an event where the price of an asset skyrockets over a short period of time as leveraged short positions get liquidated or, as the phrase suggests, 'squeezed'. This creates a snowball effect where the higher the price goes, the more shorts get wiped off, boosting the price further. On the other hand, whales are basically majority asset holders, whose movements and dealings have a marked impact on the market.

According to the latest data published by Santiment, Large Bitcoin addresses holding between 100 and 1,000 coins have shot by approximately 2 percent in the last month. "254 more of these whale addresses now exist compared to five weeks ago, which is a notable 1.9 percent increase in this short time period,” Santiment mentioned in a recent Tweet, shedding more light on the increased amount of whale activity as Bitcoin prices surge.


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Cryptocurrency Prices across Indian exchanges

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Shomik is a senior sub-editor at Gadgets 360. As someone who's screened the consumer tech space for the past four years, he's now shifted focus to the crypto-verse. When not converting currency values in his head, you may find him in an intense five-a-side football match or grinding out the newest Destiny 2 weekly challenge on his Xbox. You can reach him for tips or queries at ShomikB@ndtv.com. More
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