Large Ethereum Wallets Get Massive Inflows

Lots of people want to know what Warren Buffet is buying and selling. Unfortunately, if we want to know what Berkshire Hathaway ($BRK.B) is up to, we must wait months. Cryptocurrencies don’t have that problem. Because of blockchain transparency, we get a live view of what big money is doing. That is done through a fancy schmancy method called ‘on-chain analytics’. 

On-chain analysis looks at what kind of activity happens over a cryptocurrency’s blockchain. For example, we can monitor large Bitcoin ($BTC.X) wallets and see what leaves (outflows) those wallets and what enters (inflows). Likewise, we can watch cryptocurrency exchange wallets and record what crypto is moving into an exchange (inflow) or out (outflow). 

Analysts interpret outflows from cryptocurrency exchanges as bullish because it reduces the supply available and, most importantly, crypto leaving exchanges often means people are hodling for long periods. Conversely, exchange inflows are interpreted as bearish because selling usually follows.

Inflows to non-exchange wallets, however, are considered bullish. 

The on-chain analytics service intotheblock provided the image you see above. Large Hodlers Inflows for Ethereum ($ETH.X) are shown on the graph. Any wallet that holds more than 0.1 percent of the available ETH is regarded as a Large Hodler by intotheblock.

Analysts view inflows to Large Hodler wallets as bullish because these wallets frequently keep ETH for extended periods of time and possess a significant portion of the available ETH.

Does this indicate that the price of Ethereum will rise? Hold your rockets to the moon, keep an eye on the market, and observe what transpires. 🐳