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Bitcoin transactions over $1 million dominate in 2021

Large Bitcoin ( BTC ) transactions more than doubled in 2021, according to Glassnode’s Week On Chain report. Such operations already represent 65% of all network transactions in 2021, compared to 30% in 2020.

This metric assesses the dominance of transactions above US$1 million (approximately R$5.2 million). According to the chart below, large transactions have been gaining more space since September 2020.

## BTC falling, accumulation rising

Interestingly, the peak of this movement occurred precisely during the correction of the BTC’s high, which was consolidated as of May. That month registered exactly the peak of large transactions. Therefore, Glassnode identifies that these transactions originate from purchases, that is, accumulation of BTC.

“The data suggests that these large transactions are more likely to be accumulators than sellers and is, again, quite constructive for the price. This reflects a growing share of institutional interest and capital transfer through the Bitcoin network,” the report said.

At the same time, transactions registered a 20% increase in the last week, just during the BTC’s appreciation. Since the end of July, large transactions have grown in the double digits per week.

## Companies and funds accumulate BTC

For Will Clemente, an analyst at Blockware, the accumulation period began in 2019 and showed no signs of cooling, even with the declines in the price of BTC. Since then, large investors have accumulated nearly 270,000 BTC, or around R$63 billion.

That list includes fund managers up to large companies such as Grayscale and MicroStrategy. Altogether, these entities allocated around US$ 4.5 billion in the market. The fact that this allocation started towards the end of July is consistent with the peak in large transactions recorded from that date.

Finally, Clemente highlighted that these investors are focused on the long term. Thus, there is no search here for exit movements like those that occurred in the past. After all, today the institutional market is much more developed than in previous cycles.

“Unlike the dead cat leap of 2017, long-term holders are not looking for exit liquidity to jump ship. They are sitting for a long time and strong,” he explained.

The expression “dead cat’s leap” is used in the financial market to designate an asset that registers a brief increase during a severe period, sometimes irreversible, of devaluation. It comes from the catchphrase “even a dead cat will chime if it falls from a great height.” However, the cat named Bitcoin apparently continues to bounce and has lost none of its seven lives.

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