On-chain data shows that Bitcoin whales have participated in a significant net distribution over the past month, potentially fueling BTC’s bearish momentum.
Bitcoin whales sold off in bear market
As analyst Ali pointed out in a new job on X, BTC whales have recently been selling. The on-chain indicator we are interested in here is the “Supply distribution” from analytics firm Santiment, which tracks the total amount of Bitcoin that different wallet groups currently hold.
Addresses or investors are divided into these cohorts based on the number of tokens they hold on their balance. The 1-10 coins group, for example, includes all wallets holding between 1 and 10 BTC.
In the context of the current topic, the whale The target cohort is one that typically includes holders who own between 1,000 and 10,000 BTC. At the current exchange rate, the lower end of this range is $55.4 million and the upper end is $554 million.
So these investors have quite large stakes. The influence of any entity on the market increases the more shares they hold, so these gigantic beings can have a certain amount of power. Their behavior therefore deserves to be monitored.
Here is the chart shared by the analyst that shows the trend of Bitcoin supply distribution specifically for whales over the past month or so:
The value of the metric appears to have been going down over the last few weeks | Source: Santiment on X
As the chart above shows, the distribution of Bitcoin supply to whales has been trending downward over the past month. In total, these investors have lost a net 30,000 BTC, or over $1.65 billion at present.
The decline in the indicator has been particularly sharp over the past two days, suggesting that the sell-off in these large entities is at least partly responsible for the accident cryptocurrency has gone through.
While whales have already participated in a significant distribution, it is difficult to say whether their selling appetite has cooled. It is possible that more of these holders will feel nervous about the bear market in the coming days and end up selling some of their bags.
Thus, the indicator could be one to watch in the near future, as further declines could mean the cryptocurrency’s decline is extending. Naturally, a reversal to the upside would be quite bullish, as it would imply that whales believe the price has fallen enough to offer a profitable entry point.
BTC Price
After dropping more than 10% last week, Bitcoin hit $55,000, a level the cryptocurrency only reached in late February.
The chart below shows what the asset’s recent trajectory looks like.
Looks like the price of the coin has been on its way down recently | Source: BTCUSD on TradingView
Featured image by Dall-E, Santiment.net, chart by TradingView.com
