Bitcoin whale wearing sunglasses (Midjourney)
A whale, the name given to a large investor, sold 400 bitcoins this week, valued at R$138 million. According to the analysis company Lookonchain, this could be a sign of decline for Bitcoin.
This is because the whale has been found to be very good at “buying Bitcoin low and selling high.” While buying low and selling high may seem like a simple strategy, it’s hard to get these moves right.
In total, the address in question has accumulated a profit of US$168 million (R$910 million).
“Smart” whale sells Bitcoin
In a note published on Tuesday (17), the analysis company Lookonchain highlighted a sale of 200 bitcoins made by a “smart whale” that usually hits tops and bottoms.
As an example, the graph shows that this investor bought more than 6,000 bitcoins when its price was below US$30,000, in September 2023. Months later, in March 2024, he sold 1,500 bitcoins at around US$72,000.
“A smart whale sold 200 BTC ($11.6M) again today, it was inactive for 5 months!”
“This whale is very good at buying BTC at low prices and selling at high prices!” Lookonchain commented. “Currently, the whale still holds 2,800 BTC ($164.4 million), with a total profit of over $168 million!”
Smart whale hits multiple Bitcoin tops and bottoms. Source: Lookonchain.
After the publication, the whale sold another 200 bitcoins, totaling 400 BTC (R$ 138 million) in sales.
In any case, it is worth noting that the moves were made before the Fed meeting, when Bitcoin was below $60,000, as shown in the image above.
In other words, the investor was expecting a different reaction from the market. After all, Bitcoin is up 5.2% in the last 24 hours, reaching its highest price in the last 24 days.
However, as his negotiations appear to be long term, as he has not made any transactions for 5 months, it is still possible that he is right in his sale. Only time will tell.
Whale still has 2,600 bitcoins in his wallet
Another point to note is that the whale still has 2,600 bitcoins, having only sold ~15% of his coins. If he believed this was the top, he would have sold more bitcoins than that, as he has done on other occasions.
Smart whale sold 400 bitcoins this week, but still has 1,600 in its wallet. Source: Mempool.space.
For optimists, interest rate cuts should continue to push Bitcoin higher in the coming months. Pessimists, on the other hand, believe that this will lead to a decline due to the yen carry trade and also due to US inflation, which is not yet under control.
