In recent days, whales and miners have deposited the most Bitcoin this year, but despite all the sales the price is skyrocketing. The reason? Elon Musk changed his Twitter bio to include the cryptocurrency hashtag and sparked a flood of FOMO from Robinhood retailers looking for open markets.
Miners, whales and more can’t stop the Bitcoin rally
Bitcoin started 2021 in the most optimistic way possible, going from less than $ 30,000 to over $ 42,000 in a matter of days. After that high, things turned bearish in the short term, fueled by profit taking from early asset investors, miners and even some whales.
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Institutional investors bought what the market could offer, but the price action started to drop as sentiment changed.
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Whales are selling BTC at the highest level in eight months | Source: CryptoQuant
Whether the sense of change is behind the trend or if it is just more profit pools, the whales have recently moved more BTC to the exchanges than in the last eight months. At the same time, the mineral deposits reached the peak of the year.
Miners have also moved the most BTC all year | Source: CryptoQuant
But despite all of these bearish signals, the price of cryptocurrencies continues to rise today and has risen 20% or more in some cases over the past week.
Elon Musk Boosts FOMO Retail, Opens Robinhood Floods
Miners and early crypto-whales found their mate in an army of retail traders leaving Robinhood in search of greener pastures, combined with a ‘tide’ of institutional capital, and now those who follow or support Tesla and Elon Musk.
Elon Musk added the #Bitcoin hashtag and corresponding emoji to his bio | Source: Twitter
The recent Robinhood rampage has outraged Musk and expressed his support for free markets. Assets like Bitcoin cannot be closed like stocks. Of course, an exchange can stop trading if the situation demands it, but no one can completely stop the existence of the Bitcoin market.
Related reading | Robinhood reminder: not your keys, not your Bitcoin
Even if the exchanges were eliminated, the peer-to-peer asset could transact and find a way. Tech leaders like Musk have come to appreciate cryptocurrency technology for this reason, as well as the fact that it remains beyond the reach of state actors.
Bitcoin price skyrocketed after investors saw the addition to Musk's bio | Source: BTCUSD on TradingView.com
Coupled with Musk’s nod of approval on Bitcoin, Robinhood’s situation itself has caused an exodus from the platform and a huge boost to Coinbase, which offers the ability to move assets off the platform. , unlike Robinhood.
Featured image from Deposit Photos, Charts from TradingView.com