Recent observations have highlighted notable activities by Bitcoin “whales,” investors holding substantial amounts of cryptocurrency, ranging between 1,000 and 10,000 bitcoins. Despite the usual expectations of market volatility driven by these large investors, the current upward trend in price does not appear to be fueled by their usual trading activities. Specifically, these whales have not been active participants in selling during this uptrend, suggesting a deviation from their typical market behavior.
Movements of large whales in the range of 1k to 10k $BTC
“Typically provide significant downward volatility to the market, have not been consistently participating in this current uptrend cycle. (Green box)” – By @mignoletkr
Full post 👇https://t.co/OrwBd7ZiZV
— CryptoQuant.com (@cryptoquant_com) May 7, 2024
Potential Reasons for Reduced Whale Selling
Several theories have emerged to explain why these major players are holding off on selling their Bitcoin holdings. One theory is that they anticipate further market gains and believe that the current market cycle has not yet peaked, leading them to hold onto their assets in expectation of higher future returns. Another possibility is a shift to over-the-counter (OTC) trading, where substantial trading activity might be happening outside traditional exchanges. These OTC markets are often utilized for large transactions to minimize market price impacts, which could explain why whales are conducting their business here, especially after the recent approvals of Bitcoin-related ETFs.
In contrast to their selling behavior, Bitcoin whales have been actively purchasing the cryptocurrency. Over the past week, they have accumulated over 10,000 bitcoins.
🚨 #Bitcoin Whales are buying the dip.
They’ve added 10,000 + #BTC in the last week. pic.twitter.com/kiWpHmBhvQ
— Thomas | heyapollo.com (@thomas_fahrer) May 7, 2024
This “buying the dip” strategy suggests that these significant stakeholders are still optimistic about Bitcoin’s potential for growth, seeing the lower prices as attractive opportunities to increase their holdings.
