On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
New data shows a dramatic rise in the number of Bitcoin wallets holding anywhere between 100 BTC to 1,000 BTC, but there may be a catch.
The amount of Bitcoin (BTC) held by whales increased by around 14% after Tesla announced its foray into the cryptocurrency sector in early February 2021.
The latest data from on-chain analytics platform Glassnode shows an inflow of roughly $19.5 billion worth of Bitcoin — according to current exchange rates — into wallets that hold at least 100 BTC and a maximum of 1,000 BTC. The deposits spiked right after Tesla revealed in its January securities filings that it had added $1.5 billion worth of BTC to its balance sheet.
The news hit the wire on Feb. 8 when the cost to purchase one Bitcoin was as low as $38,057 on Coinbase. The rates shot up toward $65,000 by mid-April, driven higher by bulls that expected Tesla's involvement in the cryptocurrency sector to influence more corporates into adding Bitcoin to their balance sheets.
Honestly, I’m not surprised that Tesla bought #Bitcoin and I won’t be surprised when Apple and Microsoft do it. Having $BTC is just common sense at this point.
— Samson Mow (@Excellion) February 9, 2021
The adoption prospects for Bitcoin among corporates and other institutions boomed because of the cryptocurrency's anti-inflation narrative. Many speculators projected Bitcoin as an insurance against the Federal Reserve's expansionary monetary policies that sapped investors' appetite for traditional safe-havens like the United States government bonds and the U.S. dollar.
Tesla, in its first-quarter filing to the U.S. Securities and Exchange Commission, also noted that it wanted to buy Bitcoin by utilizing its unused cash reserve worth $1.5 billion, hinting that the electric carmaker was looking to offset potential dollar devaluation risks.
The entire Tesla episode served as a bullish cue for investors looking to maximize their returns from the Bitcoin bull run. The Glassnode metric showed that the Bitcoin supply held by 100-1K BTC wallets was stable before Tesla's announcement but spiked dramatically after it.
But there's a catch
However, another Glassnode metric, that measures the Bitcoin supply held by wallets with a 1K-10K BTC balance, illustrated a steady decline — from around 455,000 BTC (~$17.88 billion) to roughly 410,000 BTC (~$16.11 billion).
The outcome revealed that bigger whales sold their Bitcoin holdings following Tesla's announcement. As a result, they became part of the 100-1K BTC supply group.
Meanwhile, the sell-off from the 1K-10K BTC supply group did little in offsetting the Bitcoin bull run. The cryptocurrency approached the all-time high of $65,000, indicating smaller whales and retail traders absorbed the selling pressure from bigger investors.
Bitcoin is trading around $39,300 at time of writing, down roughly 38% from its record peak in mid-April.
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