BTC whales are filling their bags💰

And Inflation cools down

Author

Nisha Ramesh
January 13, 2023

Good Morning, Switchers 🌞

👋Welcome to Switch Daily.

The weekend is almost upon us. What plans? Oh, would have totally missed it, anyway, Happy Makar Sankranthi / Happy Pongal/ Happy Lohri to all of you! 🍯

While we would love to serve you some hot sweet pongal for the occasion, but, dunzo don’t deliver everywhere. Instead, we have some hot sweet news to spark your day. 

So, the US announced its inflation rate for December and the year-on-year inflation number for December has fallen to 6.5% from 7.1% seen in November 2022. Which means lower inflation and lower interest rate hikes. 

BTW, if you like reading this newsletter, give us a shout-out on Twitter and get your friends to subscribe. It will mean a great deal to us!

Here’s what we’ve got for you today: 

  • Market pulse

  • Why BTC high?

  • Sweet news

  • Tribute to BTC

Market pulse 📈

The market is reaching for the stars 🌟

Better-than-expected US CPI data in December resulted in a rare breakout session for all top 10 cryptos. BTC touched the $19K level briefly for the first time since FTX collapse.

The total market cap is hovering around the $905 bn level, an increase of 1.77% over the last day. However, the Fear & Greed Index showed a muted response to the change in market sentiment, up by just 1 point to 31/100.

Why is BTC trading upwards?

Basking the green glory of the crypto market are we? Well, who wouldn’t, with BTC managing to create an eight day winning streak and crossing $18,000 and all. 

Anyway, while you soak in the green goodness of the market gains, did you ever wonder what is pushing the market upwards? 

We did, and turns out, there could be two reasons.

1️⃣The BTC whales are back in action! 

  • The BTC 'whales' have added more than 20,000 BTC to their balances in the past week.

  • These bitcoin whales now own 4.57 million BTC.

  • That accounts for 23.7% of the total circulating BTC supply. 

Who are these Bitcoin Whales? 

“A crypto whale is an entity that holds enough digital currency to significantly influence market prices by trading significant amounts of coins and tokens.”

In this case, we’re talking about whales who own anywhere between 1000 to 10,000 BTC. 

2️⃣Miners stop selling and start buying

Glassnode data suggests that the heavy selling pressure from the BTC miners that was looming over us for the past four months has reduced since Jan 2023.

Miners net position moving from red to green means—Miners have stopped selling and begun accumulating BTC. 

Probably why BTC has gained ~10% over a week.

Will this uptrend continue?

Yesterday, Bitcoin hit an all-time high in the past month and is continuing a strong nine day winning streak for the first time since 2020. Whales and miners buying instead of selling is quite a positive move for the market. 

Yet, with an impending recession on the global economy, it is difficult to say if this trend will continue in the long run. DYOR and stay SAFU! 

Note: None of this is financial advice, and we’re not financial advisors. We’re merely your fellow investors who share information on the go. 

What else is trending? 📻

Bitcoin haven El Salvador is introducing a landmark legislation that provides a legal framework for Volcano Bond, a Bitcoin-backed bond. The bond will allow El Salvador to pay down its sovereign debt, build the proposed Bitcoin City, and institute BTC mining infrastructure.

After heated debates in the community, Polygon has proposed to hard fork. Polygon Labs claims the hard fork, which is scheduled for January 17, will help prevent network gas fee spikes and address chain reorganisations, or reorgs.

Sam Bankman-Fried, who is unemployed and under house arrest, has taken the next logical step and launched a Substack newsletter. In the first post of "SBF's Substack," he blamed 'CZ' for the demise of the crypto exchange's sister firm Alameda Research.

Bitcoin Tribute of the day…

Thank You,

See you later, folks. 👋

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