The whales transferred 19,613 BTC from unknown wallets to exchanges and 18,889 BTC and vice versa. Those long-term holders moved 6,491 BTC between crypto marketplaces but made no transactions between peers.
The Bitcoin (BTC) price rebounded following a systematic sell-off that extended from traditional markets over the last week. The market selling pressure led nearly 91% of the top cryptocurrencies to drop, with over USD 500 million in liquidations.
Since cryptocurrency investors seek relative safety in the industry, capital gradually flows toward BTC. An analysis of the activity of the Bitcoin whales will allow contrasting the above information.
Bitcoin is trading at around USD 19,848 and has accumulated an 8.2% loss over the last week. While its daily trading volume is above USD 25.18 billion, its market capitalization is about USD 379.80 billion, according to CoinGecko.
It is necessary to contextualize that activity to better dig into the status of the whales and the market as a whole. However, this is just a micro approach to one of the many factors that can influence the performance of BTC.
Weekly Analysis of the Activity of the Bitcoin Whales
In contrast to previous weeks, the Bitcoin whales seem to have reduced the number of their transactions to 27. Amid the predominance of liquidity introduction into the market, they have moved 44,993 BTC.
The predominant trend of those long-term holders has been the transfer from unknown wallets to exchanges. They moved 19,613 BTC, which represents 43.59% of the weekly total.
The second-highest trend has been accumulation, as 18,889 BTC went from exchanges to unknown wallets. That amount is equivalent to 41.98% of the weekly total.
The transfer between exchanges has been the third-highest trend, as the whales moved 6,491 BTC, representing 14.42% of the weekly total. Finally, they did not make any movements between unknown wallets.
The Current Situation of Bitcoin in the Crypto Market
The Bitcoin price remained relatively stable amid a turbulent market between inflation and recession fears. There was a liquidation of over USD 200 million worth of positions, while BTC rejected the USD 25,000 resistance level.
However, investors are seeking to protect themselves better against inflationary forces. BTC has lost its reputation as a hedge against inflation due to its correlation with equities. Although it represents a way to break free from state control over money, it depends on how much risk people want to assume.
Over the last week, the Bitcoin whales have reduced their activity but have added liquidity to the market. Even though that indicates that they might try to sell their tokens soon, investors must remain attentive to it.
It is advisable to monitor the behavior of the market, external factors, and the movements of the Bitcoin whales. That would allow having a partial perspective of the situation of the cryptocurrency.
By Alexander Salazar
