Eidoo Card Teal
Eidoo Card Purple
Eidoo Card Black

Introduce your digital currencies to the real world.
Experience DeFi on demand with the Eidoo Card

Pre-order yours and enjoy exclusive rewards,
including up to 10% crypto cashback.

Change of ownership for millions of bitcoin
Change of ownership for millions of bitcoin

Change of ownership for millions of bitcoin

By Marco Cavicchioli - 25 Mar 2020

Chevron down

In recent days, millions of bitcoin have changed ownership, going from weak investors to strong ones. 

This is revealed on Twitter by Bitcoin Jack, who writes

“Millions of $BTC (note: there are only ~18 million and some are lost) shifted from weak to strong hands on chain.

Billions ( $USD) in contracts on derivative exchanges shifted from weak to strong hands

Serious question, considering the limited supply, how can you be bearish?”. 

Bitcoin Jack has also shown a chart with the current volume of BTC’s on-chain transactions: since December 2018, there have not been so many bitcoin traded in a single day. 

The peak was on March 12th, with over 562,000 BTC traded on-chain in 24 hours

In addition, Jack adds that if these transactions were all OTC trades, it would mean a total of 2 million BTC traded in the last few days. 

It is likely that it is the high volatility of the crypto markets and enormous selling pressure that has generated such massive trading volumes

The assumption is that this volatility may have resulted in a shift of BTC from weak hands to strong ones. 

If this was indeed the case, Bitcoin Jack suggests that it would be irrational to be bearish at this time

The point is that, during the resounding crash a few days ago, a significant number of weaker BTC owners probably exited their positions, while on the other end, those buying this huge amount of bitcoin released into the market by weak hands may have been investors with more confidence in the asset and crypto market

The latter may be less inclined to sell their positions in the future, effectively reducing BTC’s supply in the market compared to the big sell-off in mid-March. 

It is difficult to determine whether this was the scenario and find evidence to support Bitcoin Jack’s hypothesis, but given that it is, in fact, a process that has happened several times before, it seems at the very least plausible. 

In fact, it should not be forgotten that, after the vertical collapse on March 13th, BTC’s price rose, albeit slightly and only over the course of days, whereas for example, the S&P 500 index continued to fall for another 10 days. 

This observation makes Bitcoin Jack’s hypothesis plausible. 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.