The number of bitcoin “whales” – large investors with an ability to influence market trends – has jumped to four-year highs alongside the recent price rally.
As of Sunday, the population of whale entities – clusters of addresses held by a single network participant holding at least 1,000 BTC – was 1,939, the highest since September 2016, according to data source Glassnode.
The whale entities metric increased by 2.2% last week, possibly adding to bullish pressures around bitcoin’s price.
The top cryptocurrency by market value rose by over 13% last week to register its best single-week performance since April.
The uptrend gathered steam on Wednesday after PayPal announced support for bitcoin and prices reached 13-month highs above $13,300 on Thursday.
The number of whale entities has increased by more than 13% this year alongside a 20% rise in the U.S. dollar supply.
The data shows high net-worth individuals increasingly consider bitcoin a hedge against inflation, according to Willy Woo, an on-chain analyst and the author of The Bitcoin Forecast newsletter.
Several top public companies have recently disclosed bitcoin investments, providing a strong vote of confidence in the cryptocurrency’s future.
Hedge fund billionaire Paul Tudor Jones believes bitcoin’s rally has just begun.
As per the technical charts, the cryptocurrency is looking north, having cleared resistance with a weekly close (Sunday, UTC) above $12,500.
The focus now is on the June 2019 high of $13,800.
Bitcoin is trading near $13,160 at press time, up 0.75% on the day.
Disclosure: The author holds small positions in bitcoin and litecoin.