The whales could be taking advantage of the rise in the price of Bitcoin to make significant profits. The Taproot upgrade will allow various projects, such as multi-signature transactions, to undergo positive changes like lower costs and less data usage.
The price of Bitcoin has reached a new all-time high in the last week but has not been able to maintain it entirely. However, the behavior of the whales and the performance of BTC indicate the latter again tries to do it.
According to data from CoinGecko, the value of Bitcoin has dropped from USD 65,312 and USD 59,150 in the last 24 hours. The movements of the whales seem to have influenced the profits of the pioneering cryptocurrency.
The Behavior of the Bitcoin Whales in the Last Week
In the last seven days, the Bitcoin whales have moved 118,705 BTC through 64 transactions. Regarding the amount of Bitcoin involved, the prevailing trend was that there were transfers between unknown wallets. A total of 70,335 BTC, equivalent to 59%, went from some wallets to others.
The introduction of liquidity into the market, with 20,877 BTC moved from exchanges to unknown wallets, is the second most marked trend. That is equivalent to 17.59% of the weekly total.
There was also an accumulation of Bitcoin, with 18,764 BTC transferred from exchanges to unknown wallets. That represents 15.81% of the weekly total.
Finally, the weakest trend was the transfer between exchanges. The whales moved 8,729 BTC, 7.39% of the weekly total, in that way.
All that suggests the whales take advantage of the rise in the price of Bitcoin to make some profits. However, the context of what happens in the cryptocurrency ecosystem is crucial to better understand the introduction of liquidity into the whale market.
The Effect of the Taproot Upgrade on the Price of Bitcoin
The activation of long-awaited BTC upgrade Taproot in block 709,632 occurred on November 14th. It allows opening the door for developers to implement new features that improve privacy, scalability, and security on the network. More than 90% of miners expressed their support for the upgrade in July. Taproot is a mixture of various technical innovations throughout the history of BTC in a single update.
As a consequence of Taproot, various projects throughout the crypto ecosystem will undergo positive changes. For example, multi-signature transactions, which require more than one group of signers to authorize a transaction, will now be cheaper and require less data usage.
Taproot will allow new developments and solutions, offering developers the opportunity to work with a very extensive toolbox to continue thinking and building. Now that the most relevant Bitcoin upgrade since 2017 has occurred, analysts expect the value of the pioneering cryptocurrency will rise.
However, options data provider Skew revealed that the observed volatility of Bitcoin is gradually receding towards a minimum of a year. Analysts currently expect the volatility of the cryptocurrency to remain low despite recent all-time highs.
By Alexander Salazar
