In recent days, whales and miners have deposited the largest amount of Bitcoin this year, but despite all the sales, price rises. The reason? Elon Musk has changed his Twitter bio to include the cryptocurrency’s hashtag, and it has sparked a flood of FOMO of Robinhood retail traders looking for free markets.
Miners, whales and more cannot stop Bitcoin Rally
Bitcoin started 2021 as optimistic as it gets, rising from less than $ 30,000 to over $ 42,000 in a matter of days. After that peak things turned bearish in the near term, driven by profit-taking from early investors in the assets, miners and even some whales.
Institutional investors bought up what the market had to offer, but the price action started to decline as sentiment turned.
Whales are selling BTC at the highest level in eight months | Source: CryptoQuant
Whether it’s reversing sentiment behind the trend, or whether it is simply making more profit, whales have moved more BTC for exchanges more recently than the last eight months. At the same time, mine deposits have reached their highest point of the year.
Miners have also moved the most BTC all year | Source: CryptoQuant
But despite all these bearish signals, the price of cryptocurrencies keep rising today, and are up 20% or more in some cases over the past week.
Elon Musk strengthens retail FOMO, Robinhood Floodgates open
Miners and early crypto whales have met their match in an army of retailers Leaving Robinhood in search of greener pastures, combined with a ‘tidal wave’ 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 kerfuffle has outraged people like Musk and spoken out for free markets. Assets like Bitcoin cannot be closed the way stocks can. Of course, an exchange can still stop trading if the situation calls for it, but no one can outright prevent the Bitcoin market from existing.
Related reading | Robinhood Reminder: Not Your Keys, Not Your Bitcoin
Even if exchanges were removed, the peer-to-peer asset could still make trades and find a way. Tech leaders like Musk have come to appreciate cryptocurrency technology for this reason, along with being out of reach of state actors.
Bitcoin price skyrocketed after investors saw the addition to Musk's bio | Source: BTCUSD on TradingView.com
Along with Musk’s approval on Bitcoin, the Robinhood situation itself has led to an exodus of the platform and a big boost for Coinbase – which offers the ability to move assets off the platform, unlike Robinhood.
Featured image from Deposit Photos, Charts from TradingView.com