Should You Panic When Bitcoin Whales Start Cashing Out
Journalist
- Wallets with more than 1,000 Bitcoins have decreased by almost 5% in the last two weeks.
- There has been a sharp increase in the movement of previously unused Bitcoins.
Bitcoin [BTC] reached a new all-time high (ATH) of over $73,000 in the last 24 hours, although as of press time there was an intense battle between bulls and bears over the crucial level.
According to CoinMarketCap, King Coin has risen steadily since the peak of its previous bull cycle and is up more than 70% since the start of 2024.
Due to the price increase, the entire Bitcoin supply was recording gains at press time, according to AskFX’s examination of Santiment data.
Santiment is the source
The number of whale addresses has dropped sharply
This was such a temptation that even large investors couldn’t resist a withdrawal.
Over 1,000 Bitcoin wallets have fallen by almost 5% in the last two weeks. Additionally, the group storing 10,000 to 11,000 coins shrank by 0.5% over the same period.
Many of these investors may have placed limit orders slightly above the previous high of $69,000. This level was reached and triggered a sell-off.
Santiment
In other words, the number of addresses holding less than 0.1 BTC has increased by 0.6% in the last two weeks. This was an indication that retail investors were re-entering the market.
The dormant supply begins to move on the chain.
The increased whale dumping may also be related to the sudden increase in the movement of unused coins. AskFX reported that within the last two weeks, coins that had not been moved in the last two to three years began to be transacted.
Santiment
Many of these Bitcoin holders will have purchased Bitcoins in the previous bull cycle. They waited for the price to recover and then started distributing when the market turned bullish. Whales’ interaction with exchanges is not alarming.
Profit-taking by whales can often cause concern in the broader market.
However, the situation was not yet serious enough to warrant panic. According to AskFX, a review of CryptoQuant data found that whales accounted for only 36% of total Bitcoin inflows into exchanges. This suggests that whales have not dumped Bitcoins in bulk.
Source: CryptoQuant
