Bitcoin whale holdings hit a new peak in 2021, despite inflation worries.

As worries of inflation spiraling out of control reinforce the rationale for investing in store of value assets, Bitcoin whales or wealthy investors with plenty of cash appear to be purchasing again.

According to a market intel report issued on Tuesday by blockchain analytics firm Chainalysis, large investors owning at least 1,000 BTC purchased 142,000 coins this week, bringing the total to over 200,000 BTC, the biggest since 2021.

The increasing buying, which coincides with growing inflation predictions throughout the world, implies that bitcoin’s core use case is investing.

“It confirms the concept that bitcoin is viewed as digital gold, or perhaps institutions are just making a longer-term play on the bitcoin price,” Chainalysis explained.

According to the Federal Reserve Bank of St. Louis, the 10-year breakeven rate in the United States, which measures how the market anticipates long-term price pressures, recently hit a decade high of 2.64 percent. In October, Bitcoin surged over 40%, reaching a new high of $66,975.

According to JPMorgan analysts, the increase is due to the misconception that bitcoin is an inflation hedge. The notion derives from the half of bitcoin’s mining incentive. The cryptocurrency’s monetary…