Whales buy bitcoin, and Binance can not cope with the influx of customers
Research: whales are buying bitcoin
Analysts at the Kraken exchange found that in February, major holders of bitcoin (100–1,000 BTC) became much more active. According to the report, the previous phase of the accumulation of coins by whales led to an increase in the exchange rate in January of this year. A similar relationship was observed in 2018–2019.
“We anticipate accumulation to conclude in the weeks/months ahead and volatility to re-emerge”, experts say.
There are also“smaller” investors who own amounts between 0.1–1 BTC — over the year their number increased by around 10%. However, the largest coin holders (over 1,000 BTC) are still employing “wait-and-see” tactics, analysts say.
Binance performance issues caused by an influx of users
Last week, customers of one of the largest cryptocurrency websites Binance encountered the website’s performance issues.
CEO Changpeng Zhao said that the problems were caused by an influx of users an increased load on the system. Zhao links the influx of customers with bitcoin’s price returning to $10,000.
“The difference between BTC at $10,000 this time around and the previous times is, there are a lot more users now. While this is a solid sign of strong recovery for the crypto market, it also puts on significant load for our systems,” the Binance CEO wrote.
CelticGold encourages investing in bitcoin
Another major investment company recommends its customers to invest part of their funds in bitcoin.
CelticGold specializes in precious metals trading. The company’s analysts published a report in which they had revealed the advantages of cryptocurrencies and recommended that investors allocate 1–5% of their portfolio into bitcoin.
“If you are very familiar with cryptocurrencies and Bitcoin, you can individually allocate higher percentages to Bitcoin. For the average investor, who is also invested in equities and real estate, 5% in the highly speculative and highly volatile Bitcoin is already a lot!”
CelticGold experts add that BTC is a safe haven asset, as it is not managed by central banks and governments. In addition, the number of coins is limited, and regulators cannot print new ones.