Bitcoin (CCC:BTC-USD) currently appears to be stuck in neutral. It had its huge selloff in May and ever since then, BTC has been treading water between $30,000 and $40,000. Such consolidation periods in red-hot assets — following a sharp correction from an all-time high — are not unusual. Rather, they are very on par for the course.
Now the question is whether this consolidation period will end in an upside breakout, or if it ends in a downside breakdown.
I won’t hold you in suspense — we think Bitcoin is on the verge of a breakout to the upside.
The smart people think this, too. And recent data backs this claim.
The Smart Money Is Betting on Bitcoin
The data shows that in recent weeks, whales — or the larger, “millionaire tier” BTC investors — have been accumulating Bitcoin like crazy. Concurrently, retail investors with smaller holdings have been dumping their BTC.
To throw some numbers into the mix, these BTC whales have accumulated 90,000 BTC — more than $367 billion worth of the crypto — in less than 25 days. Whale wallets now account for 48.7% of the total supply of Bitcoin.
But wait, there’s more.
The number of wallets holding massive amounts of Bitcoin also hit a seven-week high.
And miners — individuals who get rewarded in BTC for maintaining the Bitcoin network’s integrity — have been selling their rewards less often. Which means they’re mining, earning Bitcoin and holding it at an increasing rate.
The Bottom Line on BTC
If all that doesn’t reveal the whales’ belief in Bitcoin’s long-term future, we aren’t sure what does.
To put it in Wall Street terms, that means the “smart money” has been buying BTC while the “dumb money” has been selling.
Smart money isn’t always right, to be sure, but we think they’re right this time.
The reality is that a bunch of smaller investors jumped into Bitcoin hoping to make a quick buck, and didn’t. Now they’re running for the hills.
Meanwhile, bigger investors aren’t playing that game. They can’t afford to. There just isn’t enough liquidity in the market to support them getting in and out super fast. They’re in this for the long haul.
For whales, BTC isn’t a trade, it’s an investment. And they’re buying the dip right now.
That’s an extremely bullish indicator and one that augments our belief that the current consolidation period in BTC will end in a huge upside breakout.
Follow the whales, and buy the BTC dip.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.