The Bitcoin whales transferred around 30,000 BTC from a cryptocurrency exchange to unknown wallets. The BTC reserves on those platforms are at multi-year lows, and the recent withdrawal suggests a long-term bullish sentiment.
The activity of the Bitcoin whales usually allows predicting where the price would head next in the market. However, the following analysis focuses on what may happen when they withdraw their BTC holdings as exchange reserves hit new lows.
The whales have moved large amounts of BTC from leading cryptocurrency exchanges to unknown wallets. The increased activity of those long-term holders and their transfers from the former platforms could signal underlying bullish sentiment.
Why Bitcoin Whales Withdraw their BTC Holdings from Exchanges
Last week, the Bitcoin whales moved around 30,000 BTC from a leading cryptocurrency exchange through three quick transactions of almost 10,000 BTC each. This week, they transferred over 6,000 BTC from those platforms to unknown wallets.
It is still unclear whether they were actual purchases or mere money movements by the exchanges. Despite the massive scale of the recent transfer, it seems not to have had a significant effect on the price of Bitcoin.
That trend seems to have been around for some time, as the BTC reserves on cryptocurrency exchanges have decreased over the last two months. In that way, a total of 2.35 billion BTC remains at a multi-year low, according to data from CryptoQuant.
Concerning the increased activity of the whales, a wallet of over 11 years old became active once again. That address, which had not been since 2010, contains around 489 BTC. At the moment, there seems to be a higher number of whales in the market.
There is Accumulation of Bitcoin in the Market
The Bitcoin reserves on exchanges are at multi-year lows, and the recent withdrawal of liquidity suggests a long-term underlying bullish sentiment in the market. However, the market continues to oscillate in the short term.
Bitwise chief investment officer Matt Hougan said he expected the executive order on cryptocurrencies by Joe Biden to spark a year-long bullish run. In that regard, the asset has undergone correction to currently trading at USD 40,526.
BTC has accumulated a 1.3% loss in the last 24 hours and a 2.7% gain over the past week. Its daily trading volume is above USD 25.70 billion, and its market capitalization is about 769.47 billion, according to CoinGecko.
It is a matter of time before seeing what will happen to Bitcoin and the regulations on cryptocurrencies worldwide. Another crucial factor that affects the markets is the geopolitical tensions due to the conflict between Russia and Ukraine. The truth is that the low in BTC reserves on exchanges are real and could remain for a while longer.
The behavior of the whales contributes to the performance of the pioneering cryptocurrency. For that reason, it is crucial to know how those long-term holders have moved their BTC holdings. Everybody knows that the price of Bitcoin significantly affects the crypto market in general.
By Alexander Salazar
