Bitcoin whale assets hit annual high

(ORDO NEWS) — Large investors have ramped up their investments in bitcoin over the past week, CoinDesk reports, citing Chainalysis.

The balance of wallets containing at least 1,000 BTC increased by 142,000 bitcoins, and the cumulative balance peaked since the beginning of 2021. Analysts believe the growing interest in cryptocurrency is linked to renewed fears about inflation:

“This confirms the notion that bitcoin is considered digital gold, or that institutions conduct long-term transactions at the price of bitcoin.”

At the same time, Chainalysis experts point out that the bitcoin protocol should find applications in areas such as Web 3.0 and decentralized finance (DeFi) in order to remain relevant to other blockchains:

“The use of bitcoin has not reached complex areas like Ethereum or other first-level cryptoassets. A decentralized bitcoin tokenization method is required to unleash it as high quality capital for DeFi. If Bitcoin can be used as capital for Web 3.0, it will have a future not only as an asset with limited emission and coin fungibility, but also as a useful asset from the more innovative side of the cryptocurrency industry. ”

Experts also believe that the growth in whale investment speaks of support for the current Bitcoin rally by a staunch cryptocurrency advocate. The decline in the assets of such investors in the first quarter foreshadowed the collapse of the cryptocurrency price in May.

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