Bitcoin whales' selling behavior in bear market draws attention
In the current bear market environment, the selling behavior of Bitcoin whales is attracting widespread attention. In a recent article, the famous analyst Ali pointed out that whales holding a large amount of Bitcoin have recently made frequent moves, and this trend has caused the market to be highly vigilant.
On-chain data reveals whale dynamics
According to a new report from on-chain data analytics firm Santiment, the "supply distribution" metric provides important insights. This metric tracks the amount of Bitcoin held by different wallet groups, helping us understand the behavioral patterns of various types of investors in the market.
The market influence of whale groups
Whales are usually large holders of 1,000 to 10,000 BTC. Based on the current Bitcoin price, the lower limit of these holdings is $55.4 million and the upper limit is $554 million. Investors holding such a large amount of Bitcoin can have a huge impact on the market with every operation. Therefore, the movements of whales are particularly important.
Possible reasons behind the sell-off
There may be various reasons why whales sell Bitcoin in a bear market. On the one hand, it may be that they are pessimistic about the market outlook and choose to reduce their risk exposure. On the other hand, it may also be that they are rebalancing their portfolios and preparing to enter the market again when the market picks up in the future.
Market reaction and outlook
The selling behavior of whales will undoubtedly put some downward pressure on the market. However, it also provides more liquidity to the market, which may attract new investors. How the Bitcoin market will evolve in the coming months depends on a variety of factors, including the macroeconomic environment, policy changes, and market sentiment.
Here’s a chart shared by the analyst showing how the distribution of Bitcoin supply among whales has trended over the past month or so:
Bitcoin whale selling intensifies, market volatility increases
One notable change in the Bitcoin market over the past month has been a downward trend in the whale supply distribution. According to the latest report from on-chain data analysis company Santiment, these large Bitcoin holders sold a net 30,000 BTC during this period, which is currently worth more than $1.65 billion.
Whale selling exacerbates downward market pressure
Especially in recent days, this selling trend has become particularly obvious. The selling behavior of these large investors is undoubtedly an important reason for the recent sharp decline in the cryptocurrency market. Although whales have sold a considerable amount, it is still unknown whether their desire to sell has subsided.
Key indicators to watch in the coming days
The movements of whales will be the focus of market attention in the coming days. If these holders continue to feel anxious about the bear market and choose to sell more Bitcoin, the downward pressure on the market may increase further. Therefore, a further decline in the supply distribution indicator may indicate a prolonged downturn in the cryptocurrency market.
Potential upside for a reversal
On the contrary, if the supply distribution indicator rebounds, it will be a positive sign. Whales may think that the market has bottomed and the current price provides a favorable buying opportunity. If this happens, it will help stabilize the market and may trigger a new round of upward movement.
BTC Price
After falling more than 10% in the past week, Bitcoin has risen to $55,000, a level only reached in late February.
The chart below shows the asset’s recent performance:
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