Glassnode, the cryptocurrency market aggregation firm, has released a new report showing that whales have offloaded massive amounts of Bitcoin that they’ve been accumulating and holding. Any wallet address holding more than 1,000 Bitcoin is considered a whale by the aggregation firm.
As per the report, the number of whales in the market has increased by more than 14% in the past six weeks as investors are buying into the market to reap the rewards of the surging cryptocurrency.
Bitcoin Whales buying trend in January and offloading in February
According to Glassnode, there was a peak in whale activity, as the large-scale investors bought Bitcoin at around 80,000 Bitcoin accumulated to the addresses. At the price of Bitcoin today, that’s looking at more than $3.84 billion USD investments. However, the trend seems to have gone towards offloading tokens this month. The data shows that the whale investors could either be looking to be taking in profit and selling their Bitcoin or could be simply moving their tokens out. With more than 140,000 Bitcoin offloaded since the beginning of February, this is approximately looking at a $6.72 billion USD moved out of whale accounts this month. However, it’s worth pointing that offloading activity might not be selling. In fact, it could be bullish that whales are offloading their Bitcoin as it could mean they’re storing their tokens for longer investment without trading.
As per Glassnode:
“This wallet behaviour suggests a sizeable portion of these coins may not be sold, but instead being restructured in custodial wallets… [One] could hazard a guess that this behaviour is indicative of very long term custodial holdings and coins are entering deep cold storage. So whilst coins are on the move and larger balances are being reclassified, it does not necessarily suggest an end to whale spawning season “
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Investment is a process whereby a firm or an organization pools funds together in order to make an investment in a particular endeavor. To invest is not to merely put money aside in the hope of some profit in the near future. In fact, the term investment is usually used when we mean to spend or save the money that we have. Therefore, in order for you to understand investment as a concept and how it affects you, it would be best if we first discuss what it is.
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How Does the Market Affect Your Investments?
Investment is a process whereby a firm or an organization pools funds together in order to make an investment in a particular endeavor. To invest is not to merely put money aside in the hope of some profit in the near future. In fact, the term investment is usually used when we mean to spend or save the money that we have. Therefore, in order for you to understand investment as a concept and how it affects you, it would be best if we first discuss what it is.
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Investment can be made on almost any entity, including stocks, bonds, property, and the stock market. This is because investment is basically the purchase of a resource with the intention of making a profit. One of the most common types of investment is buying and holding stocks. However, other common types of investments include bonds, investment grade bonds, certificates of deposits, cash deposits, treasury bills, money market funds, real estate, partnerships, real private securities (like stocks, ETFs), securities in emerging markets, commodities, and the U.S. treasuries.
The goal of investing is to increase the value of your asset allocation. Your asset allocation is simply all of the investments that you have in order to maximize your own net worth. Your asset allocation is calculated by subtracting your liabilities from your assets and then multiplying this number by your current market value of each of your investments. Therefore, your asset allocation is the current market value of all of your assets minus your liabilities. This number tells you exactly how much money you can keep in your account for doing nothing. Obviously, this number will vary depending on several factors, including how long you plan to keep your investments and how much risk you are willing to take.
For example, if you have one dollar invested in blue-chip stocks, which are typically internationally recognized and have high profit potential, you could expect your account to have approximately one hundred percent return. On the other hand, if you were to invest ten dollars in a risky but potentially very profitable start-up company, you could expect your account to have a much lower return of about two percent. Now, if you were to use a very conservatively managed mutual fund, which only invests in low risk, low interest stocks, you would likely encounter returns of around three percent or lower. Therefore, you have to decide what type of risk you are willing to take in exchange for the potential yield that you are hoping for on your investment fund. If you are looking at an investment portfolio as part of your overall financial planning, then it would make sense to evaluate the return and risk that you are willing to deal with in order to meet your goals for the future economic growth of your family and business.
Some people choose to make both short term as well as long-term investments. With short-term savings account, you can be sure that your money is available to you quickly should you need it. However, if you are looking to secure your future finances, such as through the purchase of real estate, then you may want to think more about long-term investments. As you accumulate your cash equivalents, you will earn the equivalent amount you put in, and this is usually far less than what you would pay out in a short period of time.
Another important factor that investors need to consider is the risk that they are taking when they purchase stocks, bonds or mutual funds. Although most mutual funds are managed and only invest in low risk stocks, there are some exceptions. For instance, the Value Investing strategy, also known as the Warren Buffet strategy, has recently come under fire from critics who claim that it increases the chance of investors losing their investment capital. However, many prominent investors such as Warren Buffett and Peter Lynch have continued to support the strategy, saying that it has proven to be very successful. No matter what type of investments you decide to make, it is important to remember that your bottom line is always your goal and it is better to take the safe and low risk ways than the risky but potentially very profitable ways, no matter what type of investments you choose.