Recent on-chain data reveals a significant divestment by Bitcoin whales, who have offloaded approximately $2.2 billion worth of BTC in the last week. Surprisingly, the market has exhibited resilience, maintaining a robust price level amidst the substantial whale-selling activity.
Analysts have noted a substantial shift in Bitcoin whale behavior, indicating a notable decrease in their holdings. This observation is derived from the “Supply Distribution” metric provided by the on-chain analytics firm Santiment. Whales, in this context, are defined as entities holding between 1,000 to 10,000 BTC, with a corresponding value range of $43.8 million to $438 million at the current exchange rate.
A visual representation of the Bitcoin Supply Distribution for these significant holders over the past month depicts a discernible decline in their holdings. The reduction in supply coincided with a period of heightened selling activity, particularly when BTC was navigating recent lows. It is speculated that these whale sell-offs were triggered by concerns arising from Bitcoin’s failure to sustain a recovery towards the $44,000 mark.
The cumulative effect of these massive investor sell-offs amounts to approximately 50,000 BTC, equivalent to $2.2 billion. Despite this considerable divestment, Bitcoin managed to establish another local bottom and initiated a recovery, briefly retesting the $44,000 level. However, subsequent market movements have seen a decline, with the asset currently trading below this benchmark.
Additional insights from a CryptoQuant Quicktake post issued a whale selling alert based on the “exchange inflow mean” metric. This indicator gauges the average amount of Bitcoin being transferred to centralized exchanges, often indicative of selling activities. Spikes in the mean value of deposit transactions over the last two days suggest ongoing whale involvement in selling maneuvers.
Despite the substantial whale sell-offs, Bitcoin’s current market price stands at approximately $43,500, reflecting a 3% increase over the past week. The market’s ability to absorb and recover from significant whale divestments underscores its resilience and raises questions about the future trajectory of BTC amidst ongoing market dynamics.