Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. On-chain data shows the Bitcoin whales are selling at their fastest monthly rate of the cycle, a potential reason behind the asset’s latest decline. Bitcoin Whale Holdings Have Significantly Dropped Over The Past Month
In a new post on X, CryptoQuant Head of Research Julio Moreno has listed a contributing factor behind the recent plungein the Bitcoin price. The factor in question is the trend in the holdings of the whales.
Whales are defined as BTC investors carrying more than 1,000 tokens of the cryptocurrency in their wallet balance. At the current exchange rate, this cutoff converts to about $112.8 million. Thus, the only holders qualifying for the group would be those with a substantial amount of capital. Related Reading Bitcoin Dip-Buy Calls Spike: Why This Could Actually Be Bearish 21 hours ago
Exchanges and mining pool wallets may technically fulfill this requirement, but they are excluded from the group because they aren’t considered “normal” network participants.
Given that the whales include some of the most influential investors in the market, their behavior can be something to keep an eye on, as it may sometimes have a direct impact on the asset’s trajectory. Even when it doesn’t, it can still be revealing about the sentiment among these humongous holders.
One way to gauge whale behavior is through their total supply. Below is the chart shared by Moreno that shows how this metric has changed over the past year. The value of the metric seems to have plunged in recent days | Source: @jjcmoreno on X
As displayed in the graph, the Bitcoin whale supply saw a huge drawdown last month, indicating that the large holders participated in some significant net distribution.
The metric made some slight recovery as BTC’s spot price surged above $117,000, but the trend has quickly flipped during the last few days as the indicator has registered another sharp plunge. Related Reading Here’s The Boundary Bitcoin Bulls Must Defend To Save Rally 1 day ago
Since August 21st, whales have sold a net total of 147,000 BTC, worth a whopping $16.6 billion. This selloff has taken the 30-day change in the cohort’s supply to the largest negative value of the cycle so far.
Considering the timing of the selling, it’s possible that this is one of the reasons why Bitcoin has faced bearish price action recently. The market selloff may not be over yet, either, if the trend in the Exchange Inflow is anything to go by. As the CryptoQuant head has pointed out in another X post, the Bitcoin Exchange Inflow witnessed a surge on Tuesday. The trend in the BTC Exchange Inflow over the last few days | Source:@jjcmoreno on X
Investors generally deposit their coins in centralized exchanges when they want to participate in one of the services that they provide, which can include selling. As such, the growth in the Exchange Inflow could be a sign that holders are still trading away their Bitcoin. BTC Price
Bitcoin slipped under $112,000 on Tuesday, but the coin has seen a slight bounce since then as its price has climbed to $113,000. How the price of the asset has changed during the last five days | Source: BTCUSDT on TradingView Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com