In the past few days, whales and miners have deposited the largest amount of Bitcoin this year, but despite all the sales, the price is rising. The reason? Elon Musk changed his Twitter bio to include the cryptocurrency’s hashtag and sparked a deluge of FOMO from Robinhood retailers looking for free markets.
Miners, whales, and more cannot stop the Bitcoin rally
Bitcoin started 2021 as optimistically as possible and rose from under $ 30,000 to over $ 42,000 within a few days. After that high, it turned bearish for the short term, driven by profit-taking from early asset investors, miners and even some whales.
Related reading | The strength of the Bitcoin trend suggests that there is no end in sight. Historically the second strongest
Institutional investors bought up what the market could offer, but price movements began to decline as sentiment changed.
Whales are selling BTC at their highest level in eight months Source: CryptoQuant
Regardless of whether the turnaround is behind the trend or whether it’s just about more profit booking, whales have brought more BTC to the exchanges lately than they have in the past eight months. At the same time the mining deposits have reached the highest point of the year.
Miners have also moved most of the BTC throughout the year | Source: CryptoQuant
Despite all of these bearish signals, the price of cryptocurrencies continues to rise today and has risen by 20% or more in some cases over the past week.
Elon Musk strengthens retail FOMO, Robinhood Floodgates Open
Miners and early crypto whales met in an army of retailers who left Robinhood in search of greener pastures, combined with a “tidal wave” of institutional capital, and now those who follow or support Tesla and Elon Musk.
Elon Musk added the hashtag #Bitcoin and the corresponding emoji to his biography Source: Twitter
The youngest Robinhood Kerfuffle has outraged Musk and spoke out in favor of the free markets. Assets like Bitcoin cannot be closed like stocks. An exchange can of course still cease trading if the situation calls for it, but no one can directly stop the Bitcoin market from existing.
Related reading | Robinhood Reminder: Not Your Keys, Not Your Bitcoin
Even if the exchange were stopped, the peer-to-peer asset could still transact and find a way. For this reason, technology leaders like Musk value cryptocurrency technology and the fact that it remains inaccessible to state actors.
Bitcoin price skyrocketed after investors added the Musks Bio | saw source: BTCUSD on TradingView.com
Coupled with Musk’s approval of Bitcoin, the Robinhood situation itself has sparked an exodus from the platform and a huge boost for Coinbase – which, unlike Robinhood, offers the ability to remove assets from the platform.
Featured image from deposit photos, charts from TradingView.com