While many Bitcoin Zillas have “wake up” to sell BTC for over $122,000 last month, analysts say it’s a good sign of a mature market and won’t undermine the value of Bitcoin.
On Wednesday’s X-Post, Bitcoin financial services company Swan Bitcoin said the biggest rotation in Bitcoin (BTC) history is nearly complete with the history of businesses and the Treasury, as “old security guards are being replaced by new Titans.”
At the beginning of the month, Satoshi-era whales dropped an entire stack of 80,201 Bitcoin worth $9.6 billion in several transactions.
At one point, during the transfer, the price fell 4% as sales were “digested” but according to Bitcoin researcher Vijay Boyapati, it didn’t last long.
Meanwhile, market data analytics firm Cryptoquant agrees that the recent sale of Bitcoin comes from a new whale that realizes profits, with Bitcoin no longer being held above $120,000.
Crypto analyst Willy Woo said in June that whales with over 10,000 Bitcoin were steadily selling since 2017.
Whale sales are good for bitcoin, says the hedge fund co-founder
Speaking to Cointelegraph, ZX Squared Capital co-founder and chief investment officer Ck Zheng said the whales were not negative as they demonstrate “sound dynamics of a new bull market” as new buyers are jumping in.
Crypto Data Research Platform Santiment said on Thursday that wallets with 10-10,000 bitcoins from late March purchased an additional 218,570 coins, adding 0.9% of all coins to their wallets during this time slot.
Bitcoin Entities hold almost 50 trillion in BTC
Zheng said that because the exit of the OGS is “natural evolution of the system,” the player of the institution entering the space creates the shape of the order.
In particular, Crypto’s finances have proven popular among companies looking to be exposed to Bitcoin.
According to Bitbo data, there are 219 entities combined with $3.6 million in Bitcoin, worth over $419 billion. This includes funds traded on exchanges, state, public companies, private companies, Bitcoin mining companies and Defi.
“Now you have the Ministry of Finance for the Corporate, the Ministry of Finance for Bitcoin, so it’s kind of institutional order, then you have the ETF market, so they play a different kind of dynamic and even join the Wall Street machines,” says Zheng.
“In the future evolution of the Bitcoin process, it has become a different type of order. It is a healthy way of growth (…) for future growth.”
However, in the near future, Zheng said that Bitcoin’s price volatility will likely continue until Bitcoin becomes “true digital gold.”
The exit of Bitcoin Zilla shows the maturity of the market
Ryan McMillin, chief investment officer at Australia’s crypto investment manager Merkle Tree Capital, told Cointelegraph that Satoshi-Era Bitcoin’s movement represents a slow and clear trend in the financialization of Bitcoin.
“Bitcoin, which moves from these old wallets, early adopters, Cypherpunks and Libertarian technicians to institutions and ETFs, is a sign of market maturity and integration with the financial system,” he said.
According to McMillin, Gold got its first replacement product in the early 2000s, and yellow metal was repeated over a decade, from around $350 to about $2,000 per ounce.
“The same process should be expected for Bitcoin, as inevitably institutions like pension funds set up asset allocations, make profits and make profits, add positions when it falls, further reduce the volatility of that asset, and make it easier to invest in more conservative investors like insurers.”
Whales may be trying to diversify
According to Zheng, the sale of OG Bitcoin Zilla is also part of a plan to diversify its property into other potentially high-growth regions, such as artificial intelligence.
Related: Bitcoin ‘Tictok’ Fractal predicts $150K BTC price top in October
He said it was a sign of a healthy market. Overall, changing assets does not change value.
“It’s no different from buying a property. You may be the original owner of the property, but in 10 or 20 years, when prices rate a lot or things change, you may want to change,” Zheng said.
“You might want to sell your property, make a profit and invest elsewhere, and a new buyer will buy your property.
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