A visual representation of Bitcoin.
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Bitcoin’s largest investors appear to be moving up as prices recover.
Cryptocurrency accounts with more than $ 50 million in Bitcoin have been steadily increasing their purchases since the end of June, according to new data from blockchain company Chainalysis. The bullishness continued until late August as prices rebounded above $ 50,000.
“Bitcoin accumulated by large investors these days is associated with medium-term changes in Bitcoin prices,” Chainalysis Chief Economist Philip Gradwell told CNBC.
Bitcoin’s “whale” activity is related to this year’s price behavior. These large investors were the “driving force” of the market until late February, Gladwell said. Prices usually rise in 28 days as large investors acquire more digital assets. When they sell, the price goes down, Chainalysis found.
Whale activity fluctuates due to the volatility of digital assets. According to data, whales were strong buyers earlier this year, but were put up for sale as prices temporarily dropped in March and peaked around April.
From late June to August 22, these large investors acquired nearly $ 10 billion on Tuesday prices. Whale holdings are now back at February levels, according to data firms.
These large investors also tend to be long-term holders. On average, whales measured by chain analysis tend to hold at least 75% of the Bitcoins they buy.
Bitcoin hit a three-month high this week and has been steadily rising since mid-July. According to Coinmarketcap data, the value of the cryptocurrency market as a whole also exceeded $ 2.2 trillion after surpassing $ 2 trillion again earlier this month.
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