Citing market intelligence firm Flipside Crypto’s analysis, Bloomberg reported that a high number of digital wallets holding Bitcoin became active two weeks before the cryptocurrency market rally. Bitcoin skyrocketed on April 2, gaining 15 percent over the night and pushing over $4,500 for the first time this year.
According to Flipside Crypto, 40 to 50 percent of all Bitcoin had been held in digital wallets that were inactive from one to six months, while the average has reportedly been 10 percent since March 15. Eric Stone, co-founder and head of data science at Flipside Crypto, said that “there are more people warming up to the idea of buying Bitcoin.”
Stone also said that the price moves are usually the result of the interest in cryptocurrencies from a few large holders. The recent move purportedly reflects the case last fall when Bitcoin spiked 40 percent, although this time many smaller investors are “waking up.” Dave Balter, co-founder and Chief Executive Officer of Flipside Crypto stated:
“We see this move much more valid than a few whale moves in October. This probably signifies a change in perception or confidence in this asset class.”