Analytics Firm Reveals That Whales are Starting to Accumulate Ethereum

Altcoin Price

Analytics Firm Reveals That Whales are Starting to Accumulate Ethereum


  • Ethereum has seen some turbulence throughout the past day thanks to its close correlation with Bitcoin
  • While ETH was able to set a fresh post-2017 high yesterday evening, it lost its momentum and has since slid lower
  • It is still showing some signs of strength, however, and where it trends in the mid-term will undoubtedly depend on Bitcoin
  • Despite some uncertainty regarding its short-term outlook, so-called “whales” appear to be confident that upside is imminent
  • Data from an analytics firm shows that this body of investors is starting to accumulate the cryptocurrency
  • In total, there are now 39 more addresses holding 10,000+ ETH than there were just two months ago
  • This is a sign that large buyers are beginning to take larger stakes in the cryptocurrency

Ethereum is currently in the process of sliding lower following a rejection in the mid-$750 region seen last night.

The selling pressure here was quite significant, and Bitcoin’s rejection around $29,000 created an additional headwind for the cryptocurrency.

Although its price action has been somewhat lackluster over the past few days, there’s still a strong possibility that upside is imminent for ETH, as so-called “smart money” appears to be accumulating it at a rapid pace.

Ethereum Slides Lower Alongside Bitcoin

At the time of writing, Ethereum is trading down just over 3% at its current price of $730. This marks a notable decline from its recent highs of $755 that were set yesterday evening.

These highs came about in tandem with Bitcoin’s surge up to $29,000, but the rejection here was grave and caused the entire market to drift lower.

Where ETH trends in the mid-term will undoubtedly depend largely on whether or not BTC and the rest of the market can rebound and slow its descent.

Data Reveals that Whales are Rapidly Accumulating ETH 

One analytics platform explained in a recent tweet that the number of Ethereum wallets holding over 10,000 Ethereum has been on the rise over the past two months, pointing to an ongoing accumulation trend.

This accumulation has not had any serious impacts on its price action but may be emblematic of a growing trend.

“With ETH crossing $750 for the first time in 31 months, we’ve discovered that there are 39 more Ethereum addresses holding 10,000+ ETH compared to just 2 months ago. Meanwhile, the amount of addresses holding 1-10,000 ETH have shrunk over this time.”

Ethereum

Image Courtesy of Santiment.

It may take a few weeks to understand this trend’s impact and longevity, but it is a bullish sign for Ethereum’s near-term outlook.

Featured image from Unsplash.
Pricing data from TradingView.

US Citizens Would Have to Disclose Offshore Crypto Holdings of $10K+ Under FinCEN Proposal

The Financial Crimes Enforcement Network (FinCEN), the U.S. Treasury Department wing tasked with monitoring potential legal violations of domestic financial laws, wants Americans to report if they have more than $10,000 in cryptocurrencies with foreign financial or virtual asset service providers.

FinCEN announced its intention to amend the Bank Secrecy Act’s Foreign Bank and Financial Accounts (FBAR) regulations in a rulemaking notice published on New Year’s Eve, just three weeks before the Treasury Department’s leadership is expected to change.

According to a brief notice published Thursday, “FinCEN intends to propose to amend the regulations implementing the Bank Secrecy Act (BSA) regarding reports of foreign financial accounts (FBAR) to include virtual currency as a type of reportable account.” 

It did not provide a timeline for when this new proposal might be published or implemented.

The rule change would appear to bring FBAR rules around crypto holdings in line with cash held outside the U.S. by citizens or other U.S. persons. It could have the most visible impact on users of crypto exchanges like Bitstamp and Bitfinex.

At present, FBARs must be filed by individuals who have an aggregate of over $10,000 in foreign financial accounts, including currencies. Current regulations do not designate virtual currencies as an FBAR-reportable account, however. This amendment would end that exemption. 

According to the Internal Revenue Service (IRS) website, FBARs must include the name on the account, account number, name and address of the foreign bank, type of account and the maximum value held during the year. 

Individuals who fail to file face various penalties, including fines, according to the website. 

What’s unclear is what additional information crypto holders might have to file, such as blockchain addresses. 

Thursday’s notice comes just days before the public comment period for another FinCEN initiative – one that would require exchanges to store customer information when transferring more than $3,000 in cryptocurrencies to unhosted wallets and file Currency Transaction Reports for transactions aggregating more than $10,000 in crypto per day – comes to a close. 

The public notice, published just a week before Christmas, has drawn the ire of the crypto community both for its potential impact on various crypto projects and having a shorter-than-usual comment period over U.S. federal holidays. 

If both these proposed rules are implemented, U.S. persons might have to report crypto holdings and transactions in excess of $10,000 regardless of where they’re held.

4 reasons why the top 15 richest Bitcoin wallets still matter in 2021

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.

Market Wrap: Bitcoin Closes 2020 Near Record Highs

The Takeaway:

Bitcoin nearly triples its price in 2020 and ends the year close to $29,000 but ether gained 450%.

  • Bitcoin (BTC) trading around $28,963 as of 21:00 UTC (4 p.m. ET), gaining 1.5% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $27,916.63 – $29,280.05 (CoinDesk 20)

Bitcoin prices, Dec. 30 – Dec. 31, 2020.

Bitcoin printed a new record high above $29,000 early Thursday before charting a quick pullback to $27,900 during U.S. trading hours, according to data compiled by the CoinDesk 20.

Despite the minor drop, the number one cryptocurrency by market value is eyeing its third consecutive monthly gain, a feat last achieved in the second quarter of 2019. The cryptocurrency has rallied by over 45% this month alone and is on track to end 2020 with at least a 290% gain.

The price rally puts bitcoin far ahead of traditional assets such as gold and stocks. The yellow metal has gained 25% this year, and the S&P 500, Wall Street’s benchmark index, has added 15%.

The year 2020 will go down in history as the period of bitcoin maturing as a macro asset, with prominent publicly-listed companies such as MicroStrategy diversifying their cash reserves into the cryptocurrency.  

Most observers expect a continued rally in 2021. “The longer-term economic impacts of COVID are unknown. However, as we’re still in the midst of major economic disruptions and historical volatility, I believe bitcoin/crypto will continue to rise and be at the pinnacle of positive change,” Changpeng “CZ” Zhao, CEO of cryptocurrency exchange Binance, said in a New Year’s message. 

Analysts at the investment banking giant JPMorgan foresee bitcoin’s increasing mainstream adoption hurting gold’s price. 

However, a correction could be seen in the short run if the spot inflow from institutional investors slows down, according to Ki Young Ju, CEO of cryptocurrency data provider CryptoQuant. 

“We haven’t had significant Coinbase outflows since $23,000,” Ju told CoinDesk. “Tokens transferred are decreasing and the fund flow ratio for all exchanges is increasing. Grayscale BTC holdings are 607,000 since Dec. 25,” 

From a technical analysis standpoint, $27,300 is key support which, if breached, would open the doors to $25,300, according to crypto exchange EQUOS’ daily bitcoin analysis email.

Ether outperforms bitcoin

  • Ether (ETH) trading around $742.19 as of 21:00 UTC (4 p.m. ET), down 0.8% over the previous 24 hours.
  • Ether’s 24-hour range: $723.18 – $755.56 (CoinDesk 20)

Ether prices, Dec. 30-Dec. 31, 2020.

Ether, the second-largest cryptocurrency by market value, has gained over 450% this year versus bitcoin’s 300% rally. The cryptocurrency rose to a 31-month high of $757 on Wednesday and was last seen trading at $730. 

Ether received a boost from the decentralized finance’s explosive growth in 2020, and stronger gains could be in the offing next year. 

According to Ryan Watkins, an analyst at crypto data provider Messari, the CME’s recent announcement to launch ether futures in February is a sign of growing institutional interest in the cryptocurrency.

Bitcoin charted a strong rally in the run up to futures listing on CME three years ago. The exchange announced bitcoin futures on Oct. 31, 2017, when the cryptocurrency was trading near $6,300, and traded the first contract on Dec. 27. By then, prices had neared $20,000. 

Other markets

Digital assets on the CoinDesk 20 are mostly down Monday.

Notable winners on the day as of 19:00 UTC (2:00 p.m. ET): 

  • cosmos (ATOM): +11.5%
  • chainlink (LINK): +1.7%
  • OMG network (OMG): +1.6%
  • orchid (OXT): -5.0%
  • stellar (XLM): -4.5%
  • bitcoin cash (BCH): -4.0%
  • Japan: Nikkei 225: 27,444.17 (-123.98 or -0.45%)
  • UK: FTSE 100: 6,460.52 (-95.30 or -1.45%)
  • U.S.: S&P 500: 3,756.07 (+24.03 or +0.64%)
  • Oil was down 0.22%. Price per barrel of West Texas Intermediate crude: $48.18.
  • Gold was in the green 0.3% and at $1,900 as of press time.
  • The 10-year U.S. Treasury bond yield fell Thursday to 0.917%.

Faulty data? Grayscale didn’t liquidate massive amounts of XRP and XLM

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.

Data Shows New Investors Flooded into Chainlink in 2020; Upside Imminent?

Over the past few weeks, Chainlink’s price action has been nothing short of lackluster, with the cryptocurrency failing to gain any serious momentum as investors widely shift their focus away from altcoins and towards Bitcoin.

This trend shows few signs of letting up anytime soon, as most major altcoins are all stagnating as BTC continues showing signs of strength.

Until BTC enters a prolonged consolidation phase or slides lower, there’s a strong possibility that it will continue gaining dominance over the market.

Despite this short-term trend being bearish for altcoins like Chainlink, data does seem to suggest that the cryptocurrency is as fundamentally healthy as it has ever been.

According to one analytics platform, Chainlink could be well-positioned to see some massive upside due to an ongoing accumulation trend amongst smaller network participants.

They also note that while its price has gravely underperformed BTC and other altcoins like Ethereum, its largest whales are still holding strong, with there being “no apparent whale sell-offs in sight.”

This could mean that once there is a rotation of capital away from Bitcoin and towards altcoins, LINK will lead the charge and see some massive upside.

Chainlink Stable in Lower-$11.00 Region as Altcoins Consolidate

Altcoins have extended their consolidation trends despite the recent strength seen by Bitcoin and even Ethereum.

Chainlink is a prime example of this, as the cryptocurrency has been trading sideways around its current price of $11.25. This is around where it has been trading throughout the past week.

It appears to be facing some resistance within the upper-$11.00 region, as this is where it found some massive resistance that slowed its ascent and caused it to slide back to its $11.00 support region.

Analytics Firm: LINK Whales HODL Strong as New Addresses Spike

Despite Chainlink’s lackluster price action as of late, the cryptocurrency’s whales are holding strong and are showing no signs of folding anytime soon.

Furthermore, an analytics firm recently noted that the number of new addresses holding and buying LINK has spiked as of late.

“A year ago, Chainlink’s top 10 whales held 70.7% of the total circulating supply of LINK. To close out 2020, they now hold 64.5%. This can be attributed to consistent new addresses being created on the network, & no apparent whale sell-offs in sight.”

Chainlink LINK

Image Courtesy of Santiment.

The coming days should shed some light on how Bitcoin’s price action will influence Chainlink and other altcoins.

Featured image from Unsplash.
Pricing data from TradingView.

Chinese Miners Migrate to Nordic Regions, Mining Exec Says Hashrate Migration One of the ‘Biggest Developments’

Chinese Miners Migrate to Nordic Regions, Mining Exec Says Hashrate Migration One of the ‘Biggest Developments’

China has the largest concentration of bitcoin miners worldwide with estimates noting the country captures anywhere between 50-65% of the global hashrate. Xinjiang, the autonomous region of the People’s Republic of China, ostensibly accommodates 35% of the hashrate. This week a regional report from China and statements from the head of operations at Genesis Mining, indicate that Chinese miners are migrating from the area to Nordic countries like Sweden and Norway.

Just recently, news.Bitcoin.com, reported on the electrical issues in China that bitcoin miners in the country are currently dealing with due to the shortage of coal. In the report, it noted that the Cambridge Bitcoin Electricity Consumption Index (CBECI) map shows China still commands 65% of the hashrate today. However, a team member from the Cambridge Centre for Alternative Finance (CCAF) explained to news.Bitcoin.com that the CBECI map is not up-to-date and will be updated in 2021.

Back in July, it was said that China was steadily losing its concentration of bitcoin hashpower and the country dropped to 50%. The hashrate report written by Bitooda said the U.S. bitcoin mining capacity had jumped to 14% in recent months. Iran accounts for 8%, Canada, 7%, Iceland 2%, and Russia and Kazakhstan also command 8% of the world’s hashrate too.

On December 30, 2020, the financial columnist from 8btc, Iyke Aru, explains that Chinese bitcoin miners are moving from China to Nordic countries.

Aru details that in the early days, bitcoin miners in China enjoyed the lack of regulations and extremely cheap electrical rates from the country. In recent years, however, Aru says that China’s communist government has deployed “regulatory agencies” and “strict measures towards cryptocurrencies” and mining operations in China have been affected.

“Bitcoin mining is gradually shifting base,” Aru’s report notes. “From being concentrated in China, miners have started a gradual but steady migrating to countries that present more friendly conditions for their industry.”

Philip Salter, head of operations at Genesis Mining has corroborated Aru’s statements in regard to Chinese miners moving to the Nordics. Salter stressed that China’s miner migration is one of the “biggest developments” in the bitcoin industry right now. The head of operations at Genesis Mining said that the movement is due to miners seeking out financial safety and “political stability.”

“There is a very important strategic shift away from mining in China to mining in western countries like Sweden as Bitcoin investors become more public and want more stability and critical safety,” Salter detailed.

Aru’s report goes on to highlight the recent electrical struggles Chinese bitcoin miners from Yunnan province have been dealing with in recent times. Moreover, because China has banned cryptocurrency exchanges, it has “complicated issues for miners, who cannot easily convert their mined Bitcoins into fiat in order to pay for services such as electricity.”

In Nordic countries, Aru says that Chinese operations are attracted to “eco-friendly green energy.” The benefits from countries like Sweden and Norway in contrast to China, alongside the complications from the communist government, is “pushing bitcoin miners away from China,” Aru’s report concludes.

What do you think about Chinese bitcoin miners migrating to Nordic countries like Sweden and Norway for friendlier mining environments? Let us know what you think about this subject in the comments section below.

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Bitcoin Closes 2020 As Best Performing Asset Of The Last Decade

Today is the last day of 2020 — a year so many are ready to say goodbye to and never look back at. But for Bitcoin, the cryptocurrency is about to close out its most important year yet. 

At the same time, the asset also closes the last ten years as the best performing asset since 2011, underscoring a decade of growth that is only just beginning. Here’s how Bitcoin stacked up against the rest of the world of finance over the last decade. 

From Early Bitcoin Beginnings To Now

The Bitcoin white paper was first distributed in 2008, and the genesis block that began it all was mined in 2009. In 2010, the first well-known commercial transaction involving BTC and two pizzas took place. 

But it was 2011 when the asset rose to over $1 and started to be widely used as a currency — primarily for transactions on the Silk Road dark web marketplace. 

Related Reading | Analyst: Bitcoin Parabolic Trend Is “Close To A Breakdown”

From there, it has continued to be used as such but also has taken on many other use cases as its market cap has grown. Today, in 2020, institutions, billionaires, celebrities, and corporations are now buying BTC to store value and hedge against inflation. 

bitcoin history 2020

Bitcoin's entire history of price action | Source: BLX on TradingView.com

How The Cryptocurrency Compares Over The Last Decade

From the asset’s early days in 2011 as an emerging form of peer to peer electronic cash to the current digital gold narrative, the price per BTC has grown to just under $30,000.

Data shows that the cryptocurrency has outperformed every other asset over the last ten years, with a staggering 6 million percent increase. This equates to over 200% annualized returns, with the next best performer being the Nasdaq 100 at just 20% annualized returns. 

All assets compared in over the last ten years | Source: Charlie Bilello

Looking at it from the perspective that the asset has already grown from under $1 to $30,000 and over 6,000,000% gives the false impression that’s it’s too late to invest in Bitcoin. But because of the cryptocurrency’s potential and promise, it could ultimately reach prices of hundreds of thousands to millions per coin. 

Related Reading | Bitcoin Dominance Doji: Why 2021 Could Spell Doom For Altcoins

Some of the most brilliant investors alive claim getting into Bitcoin even now is like investing in Google or Apple early. Just as many naysayers exist, however, but people often don’t agree with what they cannot understand. 

Others have compared Bitcoin to the internet, and like that technology — including email, websites, and more — was all demonized at first and thought to never replace existing systems. 

Is the same fate as the internet ahead for Bitcoin as the asset’s most important year and it’s first full decade beyond proof of concept stage?

Featured image from Deposit Photos, Charts from TradingView.com

The Most Important Bitcoin Infrastructure Developments of 2020, feat. Alyse Killeen

A look at privacy and infrastructure advances that will shape the bitcoin ecosystem in the years to come.

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

This episode is sponsored by Crypto.com and Nexo.io.

Alyse Killeen is the founder and managing partner of StillMark, and has been investing in bitcoin companies since 2013. While much of the conversation this year has been about high level narratives and new institutional investors, Alyse breaks down the technical advances that happened this year.

Find our guest online:
@AlyseKilleen

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

eToro Suspends XRP Trading for U.S. Users Over SEC’s Lawsuit Against Ripple

Social trading platform eToro has become the latest firm to suspend XRP trading following the U.S. Securities and Exchange commission’s lawsuit against Ripple Labs over the sale of the cryptocurrency.

In an update, eToro’s team cited the lawsuit as the reason for the suspension, but stressed that the move will, for now, only affect its U.S. customers. The firm is prohibiting purchases of XRP on the eToro platforms, and any conversion of XRP held in an eToro wallet beginning on January 3. Existing positions will have to be closed until January 24.

Users will still be able to hold their XRP tokens on the eToro wallet and move them to any other wallet on the blockchain through it. While the move only applies to U.S. customers, eToro warned others may feel the sting:

  • We wish to highlight the potential for liquidity issues i.e. the execution of $XRP orders, including the closure of existing positions, which may be interrupted or even stopped. We may also see significant widening of spreads due to extreme market conditions.

The firm further encouraged users to “hold diverse investment portfolios” and reminded them that if they wish to diversify their holdings the platform offers stocks, ETFs, commodities, indices, and more. eToro further added it will continue to monitor legal developments related to XRP and update its users accordingly.

Per the firm, XRP trading may be suspended globally if it determines that “either market, regulatory, or other conditions warrant such action.” As CryptoGlobe reported other major trading platforms, including Coinbase and Crypto.com, already announced XRP trading suspensions after the SEC’s lawsuit was announced.

Asset managers, payment providers, market makers, and wallets also suspended trading or stopped support XRP altogether after the lawsuit was announced.

On December 22,  one day before former SEC Chairman Jay Clayton resigned, the SEC announced that it had “filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.”

Featured image via Pixabay.