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Bitcoin whales are having a field day in the markets as there is a noticeable increase in the number of activities between them. While prices remain unimpressive, whales continue to move coins around the network with increasing regularity.
Transactions of up to $10 million are within the purview of whale activity and these transactions are now more than 10 billion in recent weeks. This record surpasses the one set in May when Bitcoin was at the peak of its powers, trading over the $60K mark.
A careful perusal into the transactions of these whales unearths certain characteristics in the different sizes of whales. Larger whales increased their Bitcoin holdings while smaller whales sought to sell off their BTC as they both tried to play the upside of thin liquidity.
At the moment, Bitcoin is trading at $41,177 and has fallen by 0.97% in the last 24 hours while the weekly chart indicates a gain of 0.91%. The trading volume over the last 24 hours is at $30.4 billion representing a decline of 5%. The asset has been rejected above $44,000 which is indicative of the lack of resistance in the price range between $42K and $46K.
The pattern of activity amongst crypto whales is reminiscent of a potentially volatile period for the asset class. Particularly, the inflows into the top cryptocurrencies indicate a slew of short-term selling.
Kripto Mevsimi, an on-chain analyst at CryptoQuant put it succinctly, “normally, we can consider this as a short-term selling however since we are in the crucial areas, we need to make sure price stays above $40K. Price action below $40K could be fast and volatile.”
Around 1,000 users control 40% of circulating Bitcoin in the world with some of the largest being MicroStrategy that owns over 100,000 BTC, Tesla, Square, and the Winklevoss brothers amongst others.
The impact of whales on BTC prices is profound as they have the power to influence prices. Retail traders always monitor the movement of whales as they try to go with the ebb and flow generated by these large BTC holders.
