As is traditional, let’s start with an explanation. The most noticeable collapse the day before took place on October 13 – that was the day the US inflation results were announced. Experts had forecasted an annualized rate of 8.1 percent, but the real figure was 8.2 percent.
At the same time, core inflation amounted to 6.6 percent instead of the previously forecast 6.5 percent. As a result, the market collapse was sharp and severe, with BTC then hitting $18.1 thousand.

Bitcoin and Etherium collapse on October thirteenth, 2022

However, by the evening Bitcoin had already returned to the $19,000 mark, so the collapse was short-lived. As a result, now you can see that collapse on the four-hour chart of the BTC rate only as a huge shadow of a candle. Here it is.

The four-hour chart of Bitcoin

Naturally, traders and coin-buying investors are behind the bounce in the rate. Thanks to Glassnode’s analysis, this category of market participants is quite identifiable.

Why Bitcoin rose

It was possible to identify those willing to buy bitcoins after studying the blockchain situation. According to Cointelegraph’s sources, the main buyers of BTC in recent months have been cryptocurrency holders who have between a hundred and a thousand coins in their wallets. They are commonly referred to as “fishes” in cryptocurrency slang.

In June 2022, the total amount of BTC in their wallets was 3.71 million units, while in October the figure reached 3.77 million coins. Accordingly, we are talking about 60,000 bitcoins that have been redeemed and must have gone to long-term cryptocurrency wallets as well. Here’s the relevant graph.

Number of bitcoins in possession of addresses with between 100 and 1,000 coins

During this period of time, owners of addresses with between 10 and 100 bitcoins were also accumulating. The amount of cryptocurrency in their possession increased from 3 to 3.15 million units. A similar trend is seen among entities holding between 0.001 and 10 BTC.

At the same time, the number of cryptocurrencies in the wallets of so-called whales, that is, large investors with the volume of coins from 1 to 10 thousand BTC is dropping. Their total amount decreased from 3.82 to 3.69 million coins.

The number of bitcoins available from 1 to 10 thousand coins


It should be noted that such distribution of cryptocurrency is a fairly typical phenomenon, which implies a gradual transfer of assets from the hands of early investors to the hands of later ones. Still, ten years ago, for example, Bitcoin was valued at around $12, so almost anyone could afford to buy a couple or three coins. Now, early buyers of the cryptocurrency, who have been able to keep their serious holdings for many years, traditionally sell some of their savings.


In the same timeframe, bitcoins were sold by owners of addresses with between 10 and 100 thousand BTC. We are talking about a drop from 1.98 to 1.92 million coins.


It is worth noting here that addresses with fewer cryptocurrencies have more coins in their possession overall than large addresses. This indicates that Bitcoin's popularity is going well, i.e. coins are being distributed to smaller investors.



To assess this trend, this graph of the number of whales (in orange) against the Bitcoin exchange rate (in black). It shows that large investors were getting rid of BTC in 2021, with the trend being particularly pronounced before the cryptocurrency hit its then-record value in May. Since then, the number of Bitcoins has continued to decline.

Number of bitcoins in possession of addresses with 1,000 coins or more

Experts suggest that so-called fish continue to accumulate BTC because they see it as a safe haven for capital. Of course, Bitcoin has already fallen 74 percent from its record rate, but with inflation, the cryptocurrency’s role could increase significantly. In addition, BTC has been more stable than many stocks and fiat currencies in recent weeks, which could indicate a possible trend change in the perception of Bitcoin.

If this approach proves to be true, it will be a serious argument in favour of cryptocurrencies as an asset. Still, the coin market is currently in a bearish trend, with industry interest predictably declining.

Bank of America analysts Alkesh Shah and Andrew Moss believe that the perception of Bitcoin as digital gold may indeed become more prevalent in the future. The growing correlation of BTC with gold, an asset that has been considered a haven of value for decades, is so far in favour of this.

Bitcoin’s correlation chart with the value of gold

At the same time, Bitcoin’s correlation with riskier markets like the Nasdaq Composite and S&P 500 has remained relatively stable, with correlations of 0.69 and 0.75 respectively.

Here is their rejoinder on the subject.

The slowing positive correlation with the SPX and Invesco, as well as the fast-growing correlation with gold, suggests that investors may indeed perceive Bitcoin as a safe haven for capital. Still, macroeconomic uncertainty persists and the bottom of the market has yet to be seen.

That is, experts believe that in the current environment of rising inflation, investors may indeed switch to BTC. Accordingly, the cryptocurrency's reputation as a wealth-saving tool could materialise.

Buying cryptocurrency


We believe that the current allocation of bitcoins to smaller investors is a logical trend. Still, older cryptocurrency investors have probably already realised their financial needs, so now they are gradually getting rid of coins by selling them to people with less capital. In this environment, it is the latter that could soon become the main driving force behind the bull run and the next generation of big crypto owners.


More news is in our millionaires cryptochat. There we will discuss other developments related to the blockchain and decentralisation industry.