The whales moved 25,949 BTC from unknown wallets to exchanges and 21,270 BTC vice versa. However, those long-term holders transferred 16,251 BTC between crypto marketplaces and 13,607 BTC between peers.
Although there was a positive start, the crypto market faced an evident crisis over the last week. After the market capitalization of Bitcoin dropped by 10%, the Bitcoin whales continued to reduce their activity.
A distrust wave has emerged due to the crypto winter, leading to a reduction in transactions by the whales. While the price of Bitcoin has dropped by 5%, there has been skepticism in the overall market.
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.
Daily Analysis of the Activity of the Bitcoin Whales
Over the last week, the Bitcoin whales moved 77,094 BTC, representing a reduction of 34.20%.
The predominant trend in the activity of those long-term holders was the introduction of liquidity into the market. They moved 25,949 BTC from unknown wallets to exchanges, representing 33.66% of the weekly total.
The second-highest trend was accumulation, as 21,270 BTC went from exchanges to unknown wallets, equivalent to 27.59% of the weekly total.
The transfer between crypto marketplaces was the third-highest trend, as the whales moved 16,251 BTC, representing 21.08% of the weekly total.
Finally, the whales moved 13,607 BTC between unknown wallets, equivalent to 17.65% of the weekly total. The crypto market has made the Bitcoin whales reduce their activity due to low profitability and continued price decline.
The Performance of Bitcoin over the Last Week
BTC is trading at USD 26,649 and has accumulated a 10.9% loss over the last week. While its trading volume is above USD 29.89 billion, its market capitalization is about USD 508.53, according to CoinGecko.
Bitcoin is about to break through the support set between USD 28,000 and USD 32,000. If the price fell further, a decline might harm the whales and miners, who are worried about the profitability of mining.
The rise in mining difficulty and the decline in the Bitcoin price for almost ten weeks have led them to disconnect their machines. The hash rate has dropped by 17% over the last few days, indicating that miners are turning off their equipment.
The set base price for mining is USD 22,000 per Bitcoin, but anything below USD 30,000 raises uncertainty, especially in North America. The decline has caused an increase in return on investment (ROI) times, discouraging miners.
The Cooling of the Crypto Market Continues
External factors like restrictive policies and bills conducted in the United States have contributed to the market cooling. This week, New York passed a moratorium banning Bitcoin mining in the state because of its energy efficiency.
Those policies may further destabilize the market, which correlates with leading market indexes like the S&P 500. That index suffered a 200-point decline during the week, indicating that the global markets collapsed.
Traditional markets suffer the effects of volatility and pessimistic news, while the US economy contracts to affect Bitcoin. The current market crisis indirectly hurts expectations and the market capitalization of Bitcoin.
Investors should monitor the behavior of the market, external situations, and the movements of the Bitcoin whales. That would allow having a partial perspective of the status of the market.
By Alexander Salazar
