Large Bitcoin investors have reportedly been purchasing Bitcoin at an unprecedented scale over the past two months. Crypto YouTuber Lark Davis shared on his social media on April 16th the active buying trend of Bitcoin whales between March and April.
According to Cryptoquant data, large investors holding 1,000-10,000 Bitcoins have recorded their highest-ever purchase volume. Particularly, whales' holdings increased sharply from February to April, which coincided with the Bitcoin price adjustment period since mid-January.
Julio Moreno, Research Director at Cryptoquant, explained in his analysis report on April 15th that "the bull score index recorded below 50 for 58 out of the last 60 days" and that "this has historically been associated with negative price trends". However, he added that this does not necessarily mean the end of the bull market, and that a correction of over 30% is common at this stage of the market cycle.
On-chain analyst 'Root' pointed out that global liquidity is currently at an all-time high. Over the past decade, global liquidity has shown a high correlation with Bitcoin prices.
Investor Mike Alfred agreed with this view, emphasizing that "while there is a lot of noise in the market, what's important is that M2 is surging". He added, "GameStop is buying, Saylor is adding, other companies are buying, and countries are making plans".
Global monetary supply increase typically occurs when central banks inject money to address economic crises. This is seen as a positive signal for the cryptocurrency market, as it indicates increased liquidity for high-risk assets.
In the short term, the cryptocurrency market continues to show weakness. The total market capitalization dropped 4% in the past 24 hours. Bitcoin declined from $86,000 to $83,270 during Asian trading on Wednesday, with a slow recovery. Ethereum is also struggling to recover after falling below the $1,600 level, and most altcoins are showing a downward trend.
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