The Bitcoin whales transferred 50,300 BTC between exchanges, equivalent to 42.92% of the weekly total. Those long-term holders moved 34,897 BTC from the former platforms to unknown wallets and 31,979 BTC vice versa.
Bitcoin (BTC) closed a week with a positive return of 1.86% and a value of around USD 29,445. The whales have increased the accumulation of their holdings since the start of June.
The price of Bitcoin does not only relate to the movements of those long-term holders. External factors and actions by government agencies worldwide, like the US Federal Reserve (Fed), also affect it.
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 117,174 BTC, mainly through transfers between exchanges.
The predominant trend in the activity of those long-term holders was the transfer between exchanges. They moved 50,300 BTC between those platforms, equivalent to 42.92% of the weekly total.
The second-highest trend was accumulation, as 34,897 BTC went from exchanges to unknown wallets, representing 29.78% of the weekly total. The whales extracted liquidity from the market by 177% more than last week.
The introduction of liquidity into the market was the third-highest trend, representing 27.29% of the weekly total. The amount of Bitcoin that the whales moved from unknown wallets to exchanges dropped by 24.87%.
The Performance of Bitcoin over the Last Week
Bitcoin is trading at around USD 30,007.96 and has accumulated a 0.52% gain over the last 24 hours. During the week, the price remained primarily above USD 29,000, indicating it has found support between USD 28,000 and USD 32,000.
If the Bitcoin price broke the resistance of USD 32,000, the market trend would turn bullish. The cryptocurrency would thus become more attractive for miners to turn on their mining machines again.
It is important to remember that there is an adjustment in the Bitcoin mining difficulty every 2,016 blocks. It will increase if more miners connect, depending on the mining time and the hash rate on the network.
For that reason, the whales usually benefit from the market and extract their liquidity while the instability lasts.
Bitcoin correlates with other markets like the S&P 500 Index, which groups the 500 largest companies by market capitalization. The indicator shrank by 1.63% and showed volatility between 80 and 90 points regarding its minimum and maximum values.
Although Bitcoin faces difficulties, this positive weekly closure may represent the beginning of a change in the market trend. Bitcoin has lost 36.29% of its value from the January monthly high of USD 46,217.5.
Investors should follow the behavior of the traditional market and the movements of the Bitcoin whales. That would allow them to have a partial idea of the status of the market.
By Alexander Salazar
