Bitcoin at $70,000 – Why Whales Refuse to Sell at This High Price
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- Whales continued to hold BTC and refused to sell their holdings at a profit.
- Accumulation by retail investors slowed down and activity on the BTC network remained high.
After hitting the $70,000 mark, Bitcoin price stagnated [BTC] . Despite the numerous opportunities for Bitcoin whales to indulge in profit-taking, most of them continued to hold BTC.
How are whales doing?
Data from Crypto Quant showed that most whales did not give in to the temptation to sell their holdings.
This behavior can significantly affect the future of Bitcoin. Their continued confidence in Bitcoin can also improve overall market sentiment, attract new investors, and further increase demand.
In addition, whales holding onto their BTC can dampen price volatility and make the market more attractive to institutional investors who fear large fluctuations.
Source: Crypto Quant
Halving Anticipation
Bitcoin whales may be holding onto their BTC because they are anticipating the upcoming halving event. The halving event, which occurs roughly every four years, is a programmed reduction in the reward for mining new blocks on the Bitcoin blockchain.
This event typically results in a reduction in the rate at which new Bitcoins are created, which ultimately reduces the available BTC supply in circulation.
Historically, previous halving events have been associated with periods of increased scarcity and rising price pressure for Bitcoin. Therefore, whales may be strategically holding onto their BTC in hopes of a potential price increase after the halving.
By holding onto their Bitcoin holdings, whales are not only positioning themselves to benefit from potential price increases, but they are also contributing to the overall reduction in available supply, which can further drive prices higher.
In addition, the decision to HODL during this time may also reflect their confidence in Bitcoin’s long-term value proposition.
Read the [BTC] Bitcoin Price Prediction 2024-25
Surprisingly, retail investors have not been as heavily invested in BTC. AskFX’s analysis of Santiment data revealed that the BTC supply of addresses holding 0.01 to 1 BTC has dropped significantly over the past week.
Source: Santiment
In terms of the overall health of the network, it showed that the number of active addresses on the Bitcoin network remained constant. One of the reasons for this would be the rising popularity of BTC NFTs.
Source: Santiment
