Despite the increased volatility caused by price uncertainty, Bitcoin once again has been dominated by large entities.
An advanced analytical tracker, Bitcoin Block Bot, shows that over the last couple of hours, a Bitcoin whale swiftly moved 15,046 BTC worth $660 million into block 718,31.
When whale investors (those who own $10 million or more in BTC) plan to hold cryptocurrency for a long time, they usually send the cryptocurrency from exchanges.
Normally, Bitcoin whales use exchanges to transfer cryptocurrency when they intend to hold their cryptocurrency for a prolonged period of time. The fact that cryptocurrency exchange wallets are the most sought-after target for cryptocurrency hackers makes it riskier to store large amounts of money on an exchange.
You can’t secure Bitcoin with an exchange; it has to be stored on a hardware wallet. By storing one’s private keys in an offline device, hardware wallets make it impossible for funds to be hacked online.
After the flagship cryptocurrency suffered a bad start to the year last week, it reached its highest price in a week.
After dipping a few days earlier, the largest crypto by market value was trading around $43,700 at the time of publication. Overall, Bitcoin prices are down over 5% in 2022.
An increase in the Consumer Price Index by 7% in December could have boosted the Bitcoin market, according to a U.S Labour Department report released on Wednesday. Yet there had been fears that Bitcoin prices would have risen even faster, which would have exacerbated the Federal Reserve’s need to tighten monetary conditions and cool the economy.
Regulatory issues are also very important: Bitcoin and other cryptocurrencies are still subject to regulators and laws that differ greatly from country to country.
If restrictive laws and regulations are enacted, the underlying technology could be significantly impeded, potentially depreciating the asset’s value further.